RE:RE:RE:RE:Misleading Study Uses Unrealistic PricesWhile forecasting future Cash Flow (CF) it is necessary to assume future price for the commodity – oil, gas, gold or …..lithium in case of LI. It would be ludicrous to use present Lithium price to forecast CF in 5 years’ time. Most of the time & most conservative price forecast is simply escalating it by say inflation or an annual increase of 3 or 5%. You also must take into account any price increase related to demand & that can be more substantial if EV (electric vehicles) will become predominant by 2029. Yes, in 2029 we may be into hydrogen instead of lithium based EV but that is another story.
This study is insightful & points to a significant potential for growth for lithium producers like America Lithium.
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