Neo Lithium Corp V.NLC

RE:The Bottom Line

[SnowyWindows]

LithiumNPV wrote: A company with 2 million tonnes of LCE can be valued very simply. We can expect even more resources from this company, but for the sake of being conservative let's stick with 2 million tonnes.

Production should reach 80,000 tonnes of LCE per year because demand goes through the roof at least till 2030. A fair discount rate is 8%. 

To extract 2 million tonnes will take 25 years at 80,000 tonnes/year. Just think of all the other brines they find in that time (even going into Chile and Bolivia eventually). This will be a multi-billion dollar company.

The price of LCE should stay above $20,000/t for the foreseeable future. Lithium makes up 2% of the weight and cost of the battery so expect the price to remain above $20,000 for a very long time. It costs only $3,000/yr to extract a tonne of LCE. That's a profit of $17,000/t per year. Very conservative! The current price is $25,000 already in China.

That's $1.36 billion in profit per year ($17,000/t x 80,000t). The net present value of these numbers comes to $14.5 billion / 100,000,000 shares = $145. 100,000 is conservative.

Now I realize $145 is a bit high considering unexpected challenges, but certainly LIX should be worth more than $2, NLC worth more than $1 and AAL worth more than 40 cents.

Your price for lithium at $20K a ton is a little high and I believe Your $3,000 a ton extraction price is a little high as well.

We almost can expect more than 2 million Tonnes of LCE with their high cut off rate and just huge area of land.

I’m not sure what you are discounting and and assuming for taxes etc. but everything before your NPV seems reasonable beyond what I already stated. I think we will get close to 2.5 million tonnes