RE: Sibanye Stillwater buys half of ioneer's Nevada lithiumtiger2201 wrote:
Sibanye Stillwater buys half of ioneer's Nevada lithium project in $490 million deal
https://financialpost.com/pmn/business-pmn/sibanye-stillwater-buys-half-of-ioneers-nevada-lithium-project-in-490-million-deal-2
https://www.ioneer.com/rhyolite-ridge/dfs-summary
Very interesting deal. Quick read Ioneer's DFS summary, the full NAV is $1,265 millions, and they are planning production at the end of 2024. With 3.5 years to FULL NAV at 8% discount, basically Sibanye paid FULL NAV.
tiger
Valuations are loose guidelines, "better than nothing" idea.
For example NPV NlC is 1.2B, but it based on tiny fraction of tiny resource, assuming ridiculous production ouput while using crisis level of pricing...
Righ now, NLC has 9M of resource and spot prices is 20K = 180B worth resource. Metals are inflation protected (why 8% - because of tradition....). Even if 80B is cost we have 100B, of course recovery would be lower, but "blue sky" potential is not a joke.
Of course I would not pay 100B for NLC, I am not early LithiumNPV with his $400/share screams. Just to show, the "logic" and it can go either way.
Remember when pandemic unfolded unemployment rate went 20% up and so did DJ Industrial.
But, I love the deal with Nevada Lithium - sets new height.