Century Lithium Corp V.LCE

$65 a share

[yakattack]

Do I have your attention? Good. Now read.

CYP's NPV(8%) using the current $13k/tonne pricing is equal to US $1.88 billion, or C$2.35 billion

 

Given the same valuation model as Piedmont is trading (ON THE MARKET!), currently trading at 127.4% of their NPV(8%).. CYP should have a market cap of  

 

C$2.99 billion.. or roughly C$20/share .... 

 

That's accounting for 1/4th of the project with the past (lesser) extraction tech using sulphuric acid, numbers will be even better with hydrochloric acid.

MASSIVE

Now here's some food for thought..... if the market values Piedmont at over 1 BILLION for their project, which is less than 1/10th the size of CYP.... if you were to simply compare project size to market value.... that would mean that CYP is worth over 10 BILLION.... or north of $65 a share (if the entire project was to be utilized).

This does not account for REEs either - just existing valuations...

Will it get to $65 a share? No.

Should it get to $8-$10 a share, to be followed by a proper premium of 80-100% for $15-$20+ a share? It's possible - and it should be done.

Any NDA knows very damn well what the numbers would be post-pilot. Makes no sense to drag this on and on.

I cannot see CYP being purchased for $7-$8 a share... because that would only be equal to existing peer averages. You don't get a buyout offer that is the average of existing market caps for your competition.

This means $10+ a share - and it better be before August.
 

[DrWealth]

100% agree.. gr8 work! If cyp can get sp to $8 a share they can likely get 50% premium on that in a buyout scenario... cyp should not sell below peer average if this works.. $12+...IMO PI likely sees a 10x + opportunity post pilot plant from the $1.25.. glta next weeks should be spectacular... once pp closes mode should shift to BEAST MODE!

[yakattack]

From another investor.... this was from avanzalg on seeking alpha's article...  "1) PFS using an expensive solid-liquid separation process   During the last years, the company worked out a key component to make the sulphuric acid leach work, the solid-liquid separation process. In the PFS they had to go with a fairly costly solution to this, making up a considerable part

[macaw]

Firstly, I think everyone belives that CYP is undervalued here. But at the proposed production in  the PFS the extra reserves will only add life  to the reserves but not much NPV. The only way to extract more  NPV is to increase the daily throughput. This will require more water, bigger plant etc. These things typically don't scale forever. So you will be left  with a

[yakattack]

At what point the scaling stops and NPV ends I'm not too certain, but I do know that it has been mentioned that it can be scaled in linear fashion up or down. The biggest difference would be CAPEX and how much larger the plant needs to be to accomodate "x" amount more of material being put through it. A modular approach here would be suited to scale as need be with minimal extra

[DrWealth]

Simply put if cyp gets the value of the pit constrained only then they should sell the pit only launch cyp 2.0 do another pfs and sell to another.. now that won't happen though.. lithium is all over the property.. its not complex like gold veins.. dig and scoop.. easier to assign a value to the resource...imo the full property will be factored in the total value to some extent.. likely a

[macaw]

If the final buyer of this deposit is a car company they may only want to build a plant that suits their needs. This might give them a competitive advantage going forward.   The most important factor, I believe, is the low ongoing operational cost and life of mine. Both of which CYP has in spades. I believe NPV is a bad measure for 30+ year deposits let alone 100+ year deposits. The real