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Bullboard - Stock Discussion Forum Century Lithium Corp V.LCE

Alternate Symbol(s):  CYDVF

Century Lithium Corp. is a Canada-based advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in west-central Nevada, United States. The Company is engaged principally in the acquisition, exploration, and development of its mineral properties. The Company is in the pilot stage of testing on material from its lithium-bearing claystone deposit at its... see more

TSXV:LCE - Post Discussion

Century Lithium Corp > Updated Numbers/ Math/ Share Pricing
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Post by yakattack on Mar 21, 2021 4:42pm

Updated Numbers/ Math/ Share Pricing

Using current numbers from investing.com's Carbonate pricing, of 87K CNY ($13,366 USD)... and a conversion rate of 1.3 USD to CAD as an average.
 
All estimates using 31K tonnes of hydroxide (PFS used 27K but converted to hydroxide is just over 31K, so being a tad conservative). Also using CAPEX of 495M which should get lowered a bit. Other changes listed in each scenario.
 
145M shares of CYP is being used as an estimate.
 
 
 
Base Case:
 
2.19 Billion USD (2.85 Billion CAD)
IRR of 78.5%
50% EV/NPV Share Price = $ 9.83 CAD
Share price equal to Piedmont's EV/NPV marketing rating (125%+ EV/NPV) = $24.56 CAD
 
 
-----------------------------------------
 
If hydroxide is being used, then (being conservative) giving just a premium on top of $1K per tonne, we have:
 
2.45 Billion USD (3.19 Billion CAD)
93.9% IRR
50% EV/NPV Share Price = $11 CAD
Share price equal to Piedmont's EV/NPV marketing rating (125%+ EV/NPV) = $27.50 CAD
 
 
Right now hydroxide is less than carbonate due to a variety of factors, but that is agreed upon to shift as hydroxide is used in high-nickel/longer range EVs.
 
-----------------------------------------
If the (hydrochloric acid/sodium chloride "table salt") pilot plant works out and OPEX can be lowered to... $2,600 instead of $3,300, using the same 1K premium per tonne of hydroxide of $14,366, we have::
 
 
2.65 Billion USD (3.45 Billion CAD)
107% IRR
50% EV/NPV Share Price = $11.90 CAD
Share price equal to Piedmont's EV/NPV marketing rating (125%+ EV/NPV) = $29.74 CAD
 
 
-----------------------------------------
Same as above, except LCE carbonate pricing rises to 14K, pushing hydroxide to $15K or over:
 
 
2.82 Billion USD (3.6 Billion CAD)
120% IRR
50% EV/NPV Share Price = $12.62 CAD
Share price equal to Piedmont's EV/NPV marketing rating (125%+ EV/NPV)  = $31.03 CAD
 
 
 
You can multiply all these numbers by 3-4 to get a property wide estimate, as the PFS is only using about 25% of the property, due to the increase on resources from last summer and again now in March, 2021.


Any fair purchase would need to entail the entire property - or at minimum, 100% of NPV for existing project, based on new numbers, otherwise it would be a take-under, not a take-over. 
Comment by yakattack on Mar 21, 2021 5:04pm
Comment by Beaubie on Mar 21, 2021 5:12pm
I will take any of prices. Freedom 55 if it hits!!!!!!
Comment by yakattack on Mar 21, 2021 11:15pm
CYP needs to strike a balance between not being overly greedy and ruining the chance at selling at proper value (or at all)..... but also not undermining everyone who has supported them over the years and selling out at an amount which is dirt cheap and looking ridiculous on the world stage. Looking at these valuations in the chart.... the going rate should be at least double the average ...more  
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