Critical Elements Lithium Corp V.CRE

Spodumeme price

[Wheeler]

This from Fastmarkets this week, sumarizing Orocobre's production results for Q3 ending sept 30 into Q4

Average pricing for the fourth quarter of 2021 and January 2022 for shipments of spodumene, a precursor of lithium, is $1,650 per tonne on a cif basis for 6% Li2O, “almost double that of the September quarter,” the company said. The average spodumene price in the third quarter was $779 per tonne cif, generating revenue of $69.8 million.

I assume these are contract prices (not spot prices) seeing as they are prices for the coming quarter. That's over double the price of that used by CRE in our FS.

[Nord43]

Good morning Wheeler. In addition, perhaps a summary of future catalysts. I am likely missing some so feel free to add, adjust and  critique everyone -Demand/Global shortage -Permit -Off take agreement -Financing -NPV adjustment to present prices -Phase 2 technical studies -commencment of construction -Further drilling and expansion of   Rose resource. -exploration

[rockhound01]

Thanks Wheeler. Yes over double the price that's used in the CRE feasibility study which they are in the process of updating. At todays pricing that would put us over 1.5 Billion NPV. Match that with with key targets already identified for increased supply this could realistically go way beyond the 5 dollar mark based on simple economics and not pie in the sky BS.

[JRVansant]

at 1.5 billion NPV you're lookin at 6 to 7.5$ depending on how many shares CRE floats to finance construction (i know management said they want to keep it to 200 mill but hopefully not more than 250 mill in worst case scenario).  Depending on how the news is released and the momentum could definitely see it reach 8.50$.  Either way, my base case before i start selling is 6.50

[tinker901]

It does make some sense, but there so many variables that determine a SP that looking at NPV only and applying logic will not warranty a calculated outcome of the SP Rock Tech lithium have a NPV of 310 million and about 60 million shares (78 million fully dilluted). They have no feasibility study (PEA only )  and no permits. Last time I checked their SP was around 8.15 $. So their market

[rockhound01]

Thanks for your post Tinker. Rock Techs property is located a stones throw from where I live. It's basically a cow path into the bush surrounded by three First Nations communities. The predictions that they have made are fiction. They are at least 10 years away from anything and with the Ont Government, First Nations issues it's a pipe dream. They are great marketers and should be

[JRVansant]

Thanks tinker! always appreciate your posts!

[blaggers]

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[Speedypete]

https://www.spglobal.com/platts/en/market-insights/latest-news/metals/102021-chinese-lithium-carbonate-hydroxide-prices-hit-record-high-ahead-of-spodumene-tender