RE:RE:RE:Our JV Partner news todaytiger2201 wrote: Hi Neo,
I have been a big buyer recently, after selling all my NLC. BRZ is so under valued, the potential is so huge.
I am more spreading my lithium holdings now, in the order of holdings, the bigest ones are:
LAC, LITH, CYP, BRZ, and CRE. There are other names, but smaller positions.
I just wonder why there are not too many buyers, willing to step in. BRZ at 30 cents is 100% under valued than LPI.
tiger
Couple reasons for the discount:
BRZ is still in "orphan" stage.
Google for the graph: life cycle of a junior explorer
Speculator already left (after PEA, not much fluctuation or s/p increase, low volume). Institutional investors (or partner in Li specifics) not there yet.
LPI - was exploring rocks, speculators were still there boosting s/p.
Second, LPI has control package, 51%, which is naturally creates premium.
Finally, BRZ is cannot be promoted as much, again 17% make it less visible. I learn about BRZ through LPI's presentation.
This is good thing for us. Otherwise, BRZ would be twice as expensive, I might pass on it and stick with CYP or LITH...
All of it won't matter if company is sold 17% is 17% in that case. Project development should also erase 70% of premium and development is happening and will be accelerated with LPI full focus on it.
I do not expect DFS to be great trigger, m/b reach .4 and go down to .35 after profit taking. What it will boost is interest to salar and Mitsui move.
Signing binding agreement will effectively end Orphan status and capitalization should steadely go up over 2 years.
I just hope that Chilean bureacracy won't be a problem. Pretty much the only significant risk for BRZ.