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https://www.mining.com/web/worlds-top-battery-maker-urges-china-to-secure-lithium/
Very fair point ghoti and thanks for providing the balance, my intention was to highlight and remind everyone of the massive potential this could have. Cheers
Thats probably the best case scenario and tbh whatevers on paper doesn’t always translate into reality but this can hopefully highlight the potential here and remember it could be less, it could be more and likely over the long term (not tomorrow or next week!)
Scenario 3: Using the current market spod 6 price (according to Fastmarkets Battery Raw Material Price Update on 17/02/2022) and assumed c1 cost of $550 per tonne
Spod 6 price = $3750
Life of mine (LOM) = 8.5 years
Expected spod 6 production per anum = 220,000 tonnes
Estimated c1 costs = $550 per tonne
Expected LOM revenue = 3,750 x 220,000 x 8.5 = 7,012,500,000 (approx $7 billion)
Expected revenue per anum = 7,012,500,000/ 8.5 = 825,000,000 ($825 million)
Estimated c1 costs per anum = 550 x 220,000 = 121,000,000 ($121 million)
Estimated profit per anum = 825 million - 121 million = $704 million
Estimated market cap (assuming PE of 6) = 704 x 6 = 4,224,000,000 ($4.224 billion)
Estimated share price = Market cap / shares in issue = 4,224,000,000 / 15,832,000,000 = $0.27 or £0.20 (20 pence)
Scenario 2: Using the current market spod 6 price (according to Fastmarkets Battery Raw Material Price Update on 17/02/2022) and assumed c1 cost of $750 per tonne (very high end in my opinion)
Spod 6 price = $3750
Life of mine (LOM) = 8.5 years
Expected spod 6 production per anum = 220,000 tonnes
Estimated c1 costs = $750 per tonne
Expected LOM revenue = 3,750 x 220,000 x 8.5 = 7,012,500,000 (approx $7 billion)
Expected revenue per anum = 7,012,500,000/ 8.5 = 825,000,000 ($825 million)
Estimated c1 costs per anum = 750 x 220,000 = 165,000,000 ($165 million)
Estimated profit per anum = 825 million - 165 million = $660 million
Estimated market cap (assuming PE of 6) = 660 x 6 = 3,960,000,000 ($3.96 billion)
Estimated share price = Market cap / shares in issue = 3,960,000,000 / 15,832,000,000 = $0.25 or £0.18 (18 pence)
Scenario 1: Using the numbers from old feasibility study (Jan 2020) as stated on Kodal minerals website (https://kodalminerals.com/project/bougouni-lithium-project/overview-highlights/)
Spod 6 price = $680
Life of mine (LOM) = 8.5 years
Expected spod 6 production per anum = 220,000 tonnes
Estimated c1 costs = $466 per tonne
Expected LOM revenue = 680 x 220,000 x 8.5 = 1,271,600,000 (approx $1.27 billion)
Note: This is less than the $1.4 billion as stated on Kodal’s website as it doesn’t include the 2% year on year increase in spod 6 price (just to keep the calcs simple and give us more upside)
Expected revenue per anum = 1,271,600,000 / 8.5 = 149,600,000 ($149.6 million)
Estimated c1 costs per anum = 466 x 220,000 = 102,520,000 ($102.52 million)
Estimated profit per anum = 149.6 million - 102.52 million = $47.08 million
Estimated market cap (assuming PE of 6) = 47,080,000 x 6 = 282,480,000 ($282.48 million)
Estimated share price = Market cap / shares in issue = 282,480,000 / 15,832,000,000 = $0.017 or £0.013 (1.3 pence)
Very fair point Daz its always important to highlight that unfortunately or fortunately we do have people that drum/ramp up a stock with outlandish price targets and then take their gains, at nowhere near those claimed outlandish prices, and run off to the next stock therefore its important to beware and be realistic, in my very humble opinion. I’m hopeful Kod will do very well in the near and long term future and we have some very sensible and level headed folks on this board and I hope it stays like that however I am also aware that we will always get rampers and to be honest they are also entitled to their opinions just like everyone else but I hope that sensible heads keep prevailing on this board.
Looks like a 64k buy for nearly 20 million shares at the end and google showing kod finishing nesrly 8% up!!
Burkina Faso military says it has seized power https://www.bbc.co.uk/news/world-africa-60118993
Not necessarily bad news in this part of the world as confimed by the actual report itlsef aswell:
“Similar troubles in neighbouring Mali led to a military coup in May 2021 - one that was broadly welcomed by the public.”
https://twitter.com/KodalMinerals/status/1484126149986983939?s=20
https://twitter.com/KodalMinerals/status/1483469606362791941?s=20
The competition in the lithium market is heating up nicely for a bumper 2022 and onwards
https://news.metal.com/newscontent/101709955/review-of-cobalt-and-lithium-resources-competition-throughout-2021-%E2%80%93a-total-amount-of-over-40-billion-yuan-involved
Looks like the Chinese are not letting anything go, especially in Africa!
https://www.reuters.com/business/chinas-huayou-buys-lithium-mine-zimbabwe-422-mln-2021-12-22/
https://www.reuters.com/business/rio-tinto-buy-lithium-project-argentina-825-mln-2021-12-21/