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Surge Battery Metals Inc. V.NILI

Alternate Symbol(s):  NILIF

Surge Battery Metals Inc. is a Canadian-based company. The Company’s Nevada North Lithium Project flagship property is dedicated to exploring clean high-grade lithium energy metals in Nevada USA - essential for powering tomorrow's electric vehicles. The Company’s management team boasts a strong track record of delivering significant shareholder value. The Company is led by a board and management team with seasoned lithium experts, who previously played pivotal roles in the successful Millennial Lithium venture (sold to Lithium Americas for US$491 million).


TSXV:NILI - Post by User

Comment by deepoil0808on Oct 04, 2024 5:35pm
188 Views
Post# 36253989

RE:Selling price

RE:Selling priceOne thing is clear, Graham Harris has no intention to operate a mine.  He builds the infrastructure to a point where it becomes saleable. 

In the case of NILI, he has hit the JACKPOT.   I do not think he could have imagined that in a short period of 2 years, he would be sitting on probably the biggest deposit of lithium on the planet including the highest economic grade.

A sale price is not that difficult to estimate and it is where I see myself selling too.   You want the maximum juice possible.

So what is this price?   

In the lithium industry, companies with lithium in the ground (without a mine) are bought out between $ 100 per ton LCE and $150 per ton LCE.   Given that NILI is a CINDERALLA with many wealthy would be spouses wanting to marry, I think we can get $150 per ton LCE.

Question is:   How many tons of LCE does NILI have?

MRE:    11.24 million tons of LCE

We have to account for Evolution Mining part so the real part belonging to NILI would be:

MRE:       11.24 million tons of LCE
Less:         2.59 million tons of LCE on private lands
Plus:            .65 million tons of LCE on private lands to NILI (25%)

Total:        9.30   million tons of LCE to NILI alone

Recovery rate:     75%

MRE in place for NILI (recoverable):     6.97 millionts tons of LCE

VALUATION ON BUYOUT

6.972 million tons LCE * $150 USD ton/LCE = $1.05 billion USD


Converted to Cdn at 1.36:     $  1.42 billion

I had initially stated $ 1.6 billion, so close enough.   If we include Evolution Mining, then at lease $ 2 billion.

That is the value of NILI.   Once we hit those numbers I sell and wish the buyer well.   The buyer will of course make 10x on the purchase price but over many years. 

Good Luck, 



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