E3 Lithium Ltd V.ETL

Roth Capital Initiates Coverage: TP $4.50

[GMon]

Let's try this again.

[Beaubie]

TP?

[GMon]

12 month target price is $4.50

[ndiamond]

Excellent development.    Roth Capital is respected and has good coverage in Canada and in particular the USA.     In my opinion the $4.50 share price target is very conservative (as most analysts are). Standard Lithium (SLI) - closest in the peer group has a market cap of $1.3 billion.

[ndiamond]

COMPANY NOTE   |   EQUITY RESEARCH   |   October 07, 2021     Resources: Metals & Mining  

[ndiamond]

VALUATION We base our valuation of E3 Metals on a sum of the parts. We assign a value of CAD$260.3 million to its flagship Clearwater asset (25% of the PEA after-tax NPV). We then assign a value of 0.1% of the in-situ value of its Rocky and Exshaw projects based on an LCE price of $15,000 per tonne. This results in a value of CAD$91.4 million for the two projects. To

[Yajne]

Thanks ndiamond for your post. I find it interesting that Roth valuation is based on a fully diluted share count of over 80 million shares when E3's current fully diluted share count is approx 53 million, so their $4.50 12-month tarket assumes 50% more E3 shares coming on the market with that 12 month period. Absolutely hogwash since E3 is well capitalized well into 2022 and doesn't need