Critical Elements Lithium Corp V.CRE

Twitter chat CRE

[Rinny1]

https://twitter.com/avanzalg/status/1648983687407517699?s=46&t=KeQ1soLZ4n6np8jpSTbFbw

Based on current spodumene prices, this would result in a valuation of US$12-13 billion for Critical Elements Lithium $CRE $CRECF once in production

 

CRE $CRECF's 240,000 tonne SC5.5 production (if they'd skip the tech grade), with an assumed $600/t opex, that's a yearly EBITDA of roughly $1.3 bn USD

[monkeyhere171]

I'll argue that this valuation is very optimistic because it's based entirely on spot prices!!! This adds zero value to a real world as CRE will not be based 100% on spot prices!! Look the latest oftake agreements data available I believe it was US$675/t of SC5.5 (it was rejected)!! That's not near the numbers quoted!!! So if CRE actually manages to lock something close to the US$1

[Rinny1]

It's just an opinion on twitter, The spot price on lithium will increase, last contract agreement over 4000$ USA 

[Wheeler]

Monkey can you explain exactly what "agreements data" you're referring to. I'm kinda confused by your comment/numbers? The China spot price for spodumene is around 4000 US. "Look the latest oftake agreements data available I believe it was US$675/t of SC5.5 (it was rejected)!!"

[Wheeler]

Sorry it's around 5000 US.

[monkeyhere171]

Wheeler,   My reference is related to an article I read 2021 or early 2022 about SC contract price. Mind this was around the time when the price started to trend high. CRE will not be selling on the Spot Market in China! Can't recall which company it was but no one has contract prices at US$4,000, period! Allkem was selling small quantities on the spot market like 50,000 tonnes

[Wheeler]

CRE will not be selling spodumene contracts at spot prices, no one will, and that works in positive and negative directions. They will also not be selling 2026 contracts at 2021-22 contract prices. All spodumene contracts in 2023 will be higher than that of 2022 regardless of what happens in the spot market in 2023. I don't know where the average contract price will be in 2026 but I'm