Nemaska Lithium Inc NMKEF

RE:RE:Huge buyings opportunity

[CanadaCoin]

The value in revenues of the deposit at current price withtout transformation is somewhere around 8 billions US dollars, with net profit over 6 billions.

Why do so many of you value the stock price [asset value] of Nemaska, based on revenues.

A mining operation's [asset] value is based on their Net Present Value [NPV], which based on discounted cashflow, taxes, along with many other parimeters including Capital Costs, over the life of the mine. 

Before the major cash 'short fall', NMX had a healthy NPV of $2.4 billion. But now, increased capital costs will reduce that value. And then, the anticipated financing will dilute shareholder value and thus the per share. 

TheAdvisor.FRWM wrote:

Yes, this is making sence.

The value in revenues of the deposit at current price withtout transformation is somewhere around 8 billions US dollars, with net profit over 6 billions.

Even with hurdle in the financing and delays in the construction, there is no way the level of advancement, which is legally fully permitted and 200 millions are already invested + the financial package in place , that this NMX venture won't secure a suitable partner.

Moreover, revenues being 1 year away from now, is something investors are likely to appreciate (while securing outputs) probably.

This is a stock where smart money and long term investor gain 200-400% and where retails get squeezed. IMHO

Regards

 

JasonTombala30 wrote:

 

As per CantorFitzgerald analysis, they free'd up some stream to add it up to the 10% already avaiable. This will be sold to a great discount to minimize or completly exclude dillution

Furthermore, it is very likley the provincial government will drops some millions to help the project.

The price reduction as outpaced the expected reduction of profitability in the worst case scenario
 

This is a strong buy from now, and is why 6 senior firms covering the stock have 50cents to 1.40$ price target.

The JASON