GREY:NMKEF - Post by User
Comment by
springinhetveldon Jun 08, 2018 4:06am
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Post# 28144241
RE:RE:Now about 860 million shares plus liabilities
RE:RE:Now about 860 million shares plus liabilitiesCalgary_AB wrote: with annual revenue of only 500 mill and over a billion shares outstanding, how is SP going to be 2.00?
with no calculations just a simple compare, YRI has multiple mines with multiple metal, has 2.5 billion in annual sales and less than a billion shares outstanding...SP trades at 3.7...
In order for NMX SP to get to $2.00 would be to consolidate or buy back the shares or boost the annual income to 3 or 4 billion with good margins...so far we don't know what the take off agreements are and how much they are giving away the LI for, is there any margin left to pay the loans off?
Anyone hoping for $10.00 SP is outoftheirmind... more dilution is comming when you least expect it and the management will present it in such way that you will feel good about it...
materialsgirl wrote: The comment below represents the apparent general feeling
Relatively speaking, the project is now safe except for the ever-present geology risks.
It looke good to go up to the $1.50 to $2.00 range within 3 years as production is proven.
Annual revenue may be about $500m per year. Profitability, operating margins etc should be well over typical mining operations.
There are no more flashpoints to drive the price as the excitement is all in the past.
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The completion of the financing, although expensive and more dilutive than expected,
was a positive step in advancing the development of the Whabouchi lithium mine and
Shawinigan electrochemical plant. This financing was done during a difficult time for
lithium equities, which have dropped by an average of 55% since the beginning of the
year, despite a 13% increase in lithium price.
It is actually a simple calculation if you assume the following:
Production in 2019: 1 mtpa of ore @1.55% Li2O with 85% recovery
Price for 6% spodumene concentrate: 1000 $US/t
Cost for producing 6% spodumene concentrate: 330 $US/t
Then with a PE of 12 this gives an SP of about 2$CAD.
And then in 2020 the production of the LiOH and LiCO3 begins and the SP should go to around 5$CAD. But I assume they may have some delay in building the converter so lets say 2021 for the $5CAD target.