I know many of you have calculated and dreamed of various scenarios.
Let’s for a minute use these assumptions:
Assume overstatement of reserves by 50%, so 7.9 million tons vs 15.8.
Assume Li prices drop by 50%, so $17,500/ton.
Assume all in costs and net resulting in 15% margin.
Assume 25 year mine life span.
Assume doubling of share count to 1,304,000,000.
Here’s the math:
7,900,000 x $17,500. = $138,250,000,000 x .15 = $20,737,500,000 divided by 25 = $829,500,000 divided by 1,304,000,000 shares = .636 eps annually x 15 PE = $9.54 share price.
Then, close the loop with recycling, etc.