E3 Lithium Ltd V.ETL

Rio Tinto buys Rincon lithium mine

[biscoman]

Announced today, Rio Tinto buys Rincon lithium mine in Argentina for $825 Mill.

I wondered how E3 value might stack up against that so I poked a bit. The Rincon project was characterized as Brine extraction, but it is in fact Solar powered, meaning the brine is in ponds and … well the end product is a lot costlier than what E3 is doing. Plus, the result is lithium carbonate; E3 is lithium Hydroxide … but I digress.

My numbers are VERY broad brush and can be debated no end, but here goes:

Rincon production (now a pilot plant) is expected to top out at 10,000 tpa

E3 production (from the clearwater project alone!) expected at 20,000 tpa  (2X factor)

Rincon project life expected to be 16 yrs.

E3 Clearwater life expected at   20 yrs    (1.25 factor)

Rincon value (purchase price)  825 mill

E3 current market cap   100 mill     (8x factor)

Todays E3 price is 1.75 / share    x8 x2 x1.25 ….. Yields $35 per share

Not too shabby … I can be patient for that. Plus, thats just one of E3’s projects … perhaps some upside from that.

 

[UNKLAL]

Thanks for your post. It's nice to see positive posts here n yes this stock will go to the moon. When Alberta realizes this companies potential; starts investing in lithium as well as oil n gas n says screw the greenies the province will regain it's position in the world of natural resource strengths. Hey Norway, your sovereign oil n gas resource fund has a challenger again!!! UNKLAL

[jcw604]

They can rename their fund to energy fund, and invest into energy related metal, like E3 metal. E3 source its Lithium from waste water created during oil extraction, and and creates 2 end products: Lithium and clean water. Hope that people realize it.

[whateveryousay]

Lets see if the Conservatives finally attempt to make intelligent investment decisions.It was Klein who signed the 1% royalty deal on the oilsands.Kenny has cut most support for small business and tech R&D.9 billion has been given to multinationals.I think that ETMC will be a money maker but it will have to rely on foreign investment just like every other alternative energy company in Alberta