RE:Nemaska newsYou are trying to compare NMX & CRE like it is apples to apples. It is not. The differences are not as subtle as you make them out to be. They are very different projects with NMX more focused being a low cost processor of spodumene into carbonate/hydroxide. Financing is taking longer because it is a new process (to lithium). Electrolysis has however been used extensively for decades in other mining industries.
The 3.5x market cap difference is not a fluke that the market is mispricing.
I'm not bashing CRE I'm just pointing out that these two companies are not remotely the same and should not be compared as such.
redbull7 wrote: So they came out saying their pre-tax NPV is $3.3B, after-tax NPV is $2.4B and after-tax IRR of 30.5%.
Let's compare:
--CRE has a pre-tax NPV of $1.3B and after tax NPV of $726M (and after tax IRR of 34.9%).
--CRE's after tax NPV is lower than Nemaskas, but their IRR is higher.
--keep in mind this is only Phase 1 for CRE. They are coming out with a second NPV by June/July 2018. Once this comes out, it should be over $2B (pre-tax).
--Nemaska uses average prices of $14,000/t (and CRE used less...I believe around $12k if I'm not mistaking).
--Nemaska CAPEX is $801M (while CRE is around the $330-350M range)
Anything else stick out??? Oh yeah, let's not mention that Nemaska still has to get financing. So they are essentially in the same boat as CRE (with the exception they are more advanced and have produced "some" lithium in their pilot plants).
CRE on the other hand is also looking for financing, but at the rate they are going.......