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Bullboard - Stock Discussion Forum Advantage Lithium Corp AVLIF

Advantage Lithium Corp is engaged in the acquisition and exploration of lithium properties. It operates in single segment namely the exploration and development of unproven exploration and evaluation assets. The company's principal business objective has been the identification and evaluation of companies, businesses, properties, or assets with a view to acquisition or participation therein... see more

OTCQX:AVLIF - Post Discussion

Advantage Lithium Corp > Management said as high as 6 million tonnes of LCE
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Post by LithiumNPV on Aug 18, 2017 11:36pm

Management said as high as 6 million tonnes of LCE

Let's keep things as simple as possible to appreciate what a steal Advantage Lithium is.

AAL has 2 million tonnes of LCE (could be as high as 6 million). The average price of LCE will be conservatively $20,000/t over 20 years. The cost is $3000/t. So the profit is $27,000/t. 

2 million tonnes / 20 years = 100,000/t per year. 100,000 t/yr x $27,000/t = $2.7 billion/yr

Let's use a discount rate of 8%. That's a NPV of $2.65 billion / 90 million shares = $295.

The share price should be $295. What's the current price?
Comment by aucontrairenow on Aug 19, 2017 9:45am
LNPV, Um...I won't even question your basic premise numbers but: 1.  How did you derive $27,000 from a price of 20,000 and a cost of $3,000? 2.  How do you get $2.65 B using $2.7B and 8%? 3.  How do you divide 90M into 2.65B and get $295? RU doing the accounting on this project?
Comment by LithiumNPV on Aug 19, 2017 11:45pm
1. $27,000 is the difference between $30,000 revenue LCE and $3000 cost. 2. I discounted at 8% over 20 years using my HP12C calculator. Annual profit is $2.7 billion per year. Placing that all into the HP12C with a resource of 2 million tonnes spread over 20 years, each year's profit is $2.7 billion. 3. $2.65 billion is the net present value by dividing through by the number of shares in the ...more  
Comment by Bigdeposit on Aug 20, 2017 6:08pm
Well then, if it's a no brainer, why is AAL sitting at a measly $0.41 stock price on very little volume? Maybe it's time to do a lot more promoting and tell the world about Advantage. Not very happy buying this at 0.75 and watching it sell off soon after several original directors resigned.
Comment by aucontrairenow on Aug 20, 2017 6:21pm
Pay it zero attention Big, LNPV has the same posts word for word, cut and pasted, onto the LIX and NLC boards...I dont even know where he gets that AAL has only 90M shares outstanding...
Comment by LithiumNPV on Aug 20, 2017 7:23pm
I was just using an average number across all 3 companies. But AAL has 135 million shares. I used the same formula for all 3 companies for LIX and NLC since they all have about 2 million tonnes of lithium carbonate equivalent each. If my calculations were too complicated for you just appreciate this. 2 million tonnes of LCE x  $22,000 profit/t ($25,000/t - $3000 cost/t = $22,00/t profit) = ...more  
Comment by LithiumNPV on Aug 21, 2017 1:02pm
The world is crazy missing good valuations and other times ridiculously overpaying. For example, Tesla is probably too rich and bitcoin is insane. Nobody uses it for anything and it went to $4600. Bitcash is already $800. Crazy! Bitcash went to $800 from nothing. Clorox has a price to book of 44x. That's insane. Eventually things come around when investors compare investments.  I bought ...more  
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