Post by
waldenpawned111 on Apr 03, 2022 10:32am
Bright future!
In a recent podcast, Ana said Sigma would currently be fetching $2300/tonne of concentrate on the open market. By the time the company starts production in late 22/early 23, I’d guess the price will be closer to us$3000. I assume LG and Mitsui will be getting some sort of discount for committing early, so let’s assume us$2500. Build in all in costs of us$500/600 per tonne. Also assume 2 quarters to get up to full production. So, by the second half of 2023, Sigma will be conservatively pulling in 230000 x us$1900 for 12 months, then 460000 x us$1900 plus in 24 months (cause there’s NO WAY they aren’t going to fast track phase 2). Then phase 3 in 48 months?? Add in a premium for Sigma's stellar record with ESG? And no debt. THE NUMBERS ARE MIND BOGGLING. And if you don’t believe me, listen to Joe Lowry, Mr Lithium. This market won’t be in balance until at least 2030.
It's also worth noting that SQM's trailing PE is 43. I could easily see Sigma with EPS of us$6-8 by 2025.
Comment by
waldenpawned111 on Apr 03, 2022 10:36am
Ana also suggested that their concentrate is "battery grade" and offered battery makers 30% greater productivity compared to the concentrates being produced by their competitors.