RE:RE:RE:A long and staying long but we need a partnerLoughatorick wrote: The PEA was based on lithium price of $ 14,000 per tonne.
Standard Lithium and Lake recently issued DFS using $ 30,00 per tonne over the life of the project.
I could go on....the lowest sales value in recently issued PEA, PFS and DFS ranges from $ 20,000 to
$ 30,000 per tonne. In other words, the industry expects big increases in lithium prices over the next 25 to 40 years.
Lets say E3 uses $ 20,000 per tonne value. That would be approximately 50 % higher than what was used in the PEA and would compare favourably when investors are looking to fund lithium projects.
Lithium revenues are the largest factor in calculating the PFS and the increase in revenue will far exceed increase in CAPEX costs.
The increase in the estimated NPV of the project will allow for some dilution without negatively impacting current shareholders.
In my opinion, the share price will rise the closer we get to commencement of commercial operations.
The biggest risk to the share price is not being able to raise the necessary funds to build the plant.
I would be quite content to give a partner with deep pockets an oversized share of the stock to reduce the downside risk and increase the odds of successfully commencing commercial operations.
Excellent points. Also, we should realize that offtake agreements are being priced much higher than the current spot price. Nobody is selling their entire production at spot prices. Spot prices are great for following the trend, but just like other commodities, they are in the basement in down cycles, and overly extended in up cycles.