Re: Deutsche Bank Fireside Chat Results with CEO Jon Evans - Pros and Cons (12/7/22)
posted on
Dec 15, 2022 09:03AM
Thank you very much for the information. Nice that someone takes the time to help the rest of us. You can derive a lot from the mentioned plans, and I think we all know them, but one thing I take note of is that it is actually difficult to put new Lithium projects into production. This leads me to predict that we may well see a Lithium shortage in the near future, and Lithium rights will come in high price. For Thacker, it is now most important that there is a concrete decision, so that at least planning can be done.
The fact that there will soon be sales from the CO project will give Lac a good position, because with interest rates presumably landing at the current level, it is important that the company has a positive cash flow. Therefore, I still see that Lac can rise in price. There is no doubt, however, that the increases that I calculated and believed in do not keep up with the uncertainties from the Thacker project. My best bet now would be a SP of 30 within the short range and that would be the value from CO. After this, my suggestion is that an SP of 50 during 2024 will be a possibility if Thacker is not buried, because then the positive cash flow and rights etc. will easily support an SP of USD50 or more.