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Frontier Lithium Inc V.FL

Alternate Symbol(s):  LITOF

Frontier Lithium Inc. is engaged in the acquisition, exploration and development of lithium mineral properties in Ontario, Canada. The Company is engaged in a pre-production business with a focus to be a strategic and integrated domestic supplier of spodumene concentrates for industrial users as well as battery-grade lithium hydroxide and other chemicals to the electric vehicle and energy storage markets in North America. The Company’s flagship asset, PAK Lithium Project, located about 175 kilometers (km) north of Red Lake, Ontario in the Red Lake Mining District and encompasses close to 27,000 hectares (ha). It also has two other spodumene-bearing discoveries, such as the Bolt pegmatite, which is located between the PAK and Spark deposits, as well as the Pennock pegmatite, located 25 km northwest of the PAK deposit within the project claims. Its lithium products include spodumene concentrate and lithium hydroxide monohydrate.


TSXV:FL - Post by User

Comment by YCBASMGon Feb 09, 2023 7:01pm
127 Views
Post# 35278480

RE:Possibilities...

RE:Possibilities...Here is some math for you. 

After the PEA was released by the company (2/16/2021) Frontier had a total market cap that settled in at about 14% of the $974 million NPV value in the PEA.  If I assume the NPV in the PFS is at the same discount to the life-of-mine as in the PEA then the new NPV should be $24.96 billion.  Applying the same total market cap to NPV (14%) and then dividing by the current shares outstanding gets you a per share value of $17.02.  However, the PFS will likely use a lower, "more conservative" price for lithium so the PFS  and therefore show a lower NPV that in my calculation, which was done in the PEA.  Let's say they use a price for lithuium that is half the current price, then the shares should be trading at about half my calcuation or $8.50 when the PFS is released.  This is back of the envelop math, so there may be other factors that will affect the NPV in the PFS.  Also, progress on other fronts are gradually de-risking the project and should reduce the discount to NPV implying a slightly higher price.

So, the long and the short of it is that the shares should be trading at about $8.50 after the PFS is released. 
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