OTCQX:AVLIF - Post by User
Post by
LithiumNPVon Aug 18, 2017 11:36pm
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Post# 26598971
Management said as high as 6 million tonnes of LCE
Management said as high as 6 million tonnes of LCELet's keep things as simple as possible to appreciate what a steal Advantage Lithium is.
AAL has 2 million tonnes of LCE (could be as high as 6 million). The average price of LCE will be conservatively $20,000/t over 20 years. The cost is $3000/t. So the profit is $27,000/t.
2 million tonnes / 20 years = 100,000/t per year. 100,000 t/yr x $27,000/t = $2.7 billion/yr
Let's use a discount rate of 8%. That's a NPV of $2.65 billion / 90 million shares = $295.
The share price should be $295. What's the current price?