Century Lithium Corp V.LCE

RE:RE:Cap Ex

[fulogas1]

 @EpsteinResearch On $CYP Cypress Development Corp. (an advertiser on my website)... I agree with @hungwell that the NPV(8%) could come in lower than that found in the PEA, due in large part to a lower #lithium price assumption. However, in speaking with mgmt., a critical path they are pursuing is to be very conservative in the inputs. I think they want the PFS to be quite robust to show to prospective partners. So, the after-tax NPV(8%) could be lower, but the level of accuracy should be significantly higher. Not just the usual step up from going from PEA to PFS, a bigger jump, as a number of challenges have been worked through. And, processes that were already understood have been improved upon. 
In some cases, maybe a select cap-ex or op-ex metric might not improve (in terms of cost) but that metric might improve on the reliability of it working as planned. That's all good. As it stands, the ratio of the CYP's enterprise value to its after-tax NPV(8%) in the PEA is 0.9% (less than 1%). If we assume that the NPV(8%) declines by 20% to C$1.54 billion from C$1.93 billion, the EV/NPV ratio would only move from 0.9% to 1.1%. Peers trade at an average of 8.0% of EV/after-tax NPV(8%). 

Hungwell's Thoughts Below
So   we have a ways to go yet IMHO..   Lets all do some real calculation on future potential " VALUE "
Lets say being a shareholder with  500,000  shares.. A profit of a dollar a share could mean perhaps a dividend paid monthly..   Lets say half that dollar is a dividend ok   50 cents a year for that 5 years after everything is paid for and we are up an running full tilt with any qlitches all smoothed out.  Hey  Shares are twenty cents right now..  probably not for much longer..  IMHO..                so in this 5 year period the company treasury also has $.50 x 5 years equaling $2.50 per share.  Yes  it is cash rich....  and along comes a buyer....    What is the value now.. he buyer looks at value of equipment (all paid for), all the treasury cash  and the dividends and thinks or wants it all..   Well the equipment is still probably worth 250 million dollars... the treasury has 350 plus million sitting there..so they now know that 600 million would be a steal. That would give us poor people another 4 dollars per share...Good deal            NO NO NO.....                               
    At that price and the buyer getting the treasury..  they are only paying $250 million...They could actually  recoup  their investment in less then 2 years..