Future SP possibilitiesIt seems there’s plenty on negative sentiment surrounding the SP in the recent past and many “under water” investors who have lost confidence in mgt, company and market or otherwise. So I thought I’d share a rather simple yet telling analysis of the possibilities if the company realizes its targets.
Li Cost of production 3200/3900 T 20,000 T/yr (at full production)
Li Price $6,000/T
I Cost of production 27/35kg 1,400 T/yr (at current production)
I Price $45kg or $40,815/T
Li Revenue $120,000,000 I Revenue $ 57,000,000
Li cost $ 78,000,000 I cost $ 44,443,000
Gross $ 42,000,000 Gross $12,557,000
Combined Gross $54,698,000
@ 254,183,439 shares outstanding = $0.21 EPS @ 14x PE = $3.01 SP
This is assuming the prices of Li & I stay at current prices and costs are estimated using the high range number above. The gross amount does not include admin & general operating costs of the company just production costs. Assuming mgt gets to production targets by the end of 2014 then this picture could reflect forward PE 2015. That a pretty nice upside on a conservative estimate. This is all in their presentation of the web site but not broken down to the SP .. Proof is in the pudding as they say! GLTA