Century Lithium Corp V.LCE

Some #'s To Think About

[yakattack]

According to Peter Epstein... " I don't know about IRR > 50%, but I bet > 40%. More important is the ratio of after-tax NPV divided by upfront capital (the higher the better). That ratio, which measures bang-for-buck, ranges from 1.0x to 3.6x among the 7 peers I routinely compare. For Cypress, the ratio is 3.3x, second best behind Neo Lithium. However, if op-ex & cap-ex decline meaningfully from using Hydrochloric acid instead of sulfuric acid, the ratio could increase to 4.5x, maybe 4.6x. That would make it a no-brainer for a strategic partner to pounce. "

https://epsteinresearch.com/about/

Now.... let's say they can reduce a couple hundred dollars off of the cost per tonne..... and say 27K tonnes a year for LOM. That's about 215M cost reduction alone or almost double the market cap now. 

 

Also let's not forget the conversion factor on production between carbonate and hydroxide, whereas hydroxide would have more tonnage a year... say around 30K. Let's say they can reduce costs of around 300 a ton. Now we're looking at 360M in reductions.

Now what if they don't need the sulphur plant? Those acid costs made up a huge chunk of the capital costs. Someone correct me if wrong but the conversion from hydroxide monohydrate to LCE is .88 (according to British Geological Survey). So if we go in reverse that is more tonnage a year.

 

Then we have REE credits. If they can extra enough that could provide a few tens of millions in revenue for LOM. So put 1) REE credits 2) reduced operating cost 3) reduced capex .... and we may see something like 400-500M in reductions. Could happen... a 2x-3x from here just due to reductions let alone the project which is only using about 1/3rd the resources.... likely 1/4.

SEE YOU AT $7+

[slyder3]

Well looks like the bottom hasn't come yet,Smart money sold 2 days ago$2.00+ range  and very cautiously waiting for the bottom to re- enter? I was hoping we were gonna be on that track heading up. With all going on very surprised we are as low as we are,it is what it is I guess. Realistically we did climb fast ,but fell faster. Hoping for better days ahead. Cheers Slyder3 

[yakattack]

Smart money is buying.

[yakattack]

https://asia.nikkei.com/Business/Markets/Commodities/China-tightens-rare-earth-regulations-policing-entire-supply-chain

[kh231]

WOW! Thanks for posting that link to that news from China, Yak!  That's nothing to sneeze at, as you can be sure Prez Biden will race to secure all REE's from Nevada to drastically reduce reliance on China for REE's. From that article, Japan also wants to steer away from China, so Biden might have a great partner in the Japanese.