LI3 Energy Inc (fka LIEG)

[Dr_Vonschellan]

LPI speaks to us! ....... through an_arm's_length_3rd_party_mouthpiece
LPI has hired TSI Capital Pty Ltd to produce a cutesy-wutesy sneaky-peek-a-boo early teaser "Initiation Report" on the upcoming LPI Resource Estimate JORC which could be issued later this month. TSI (The Sophisticated Investor) is a rah-rah cheerleader for LPI our current 26.4% partner in NewCo with aspirations to become a 50% partner eventually. The TSI teaser report appears on LPI's website Click Here
along with a razzmatazz video Click Here version 16
or Click Here for version 4

To save you some time, I will summarize TSI's earth-shattering new totally colossal unforeseen finding that LPI who closed at AU$.305 yesterday is really worth AU$1.10
The summary goes like this:
In a land far far away in a time long long ago LPI was AU$.0305 pps... yesterday.
Yeah yeah! Rah rah! Maybe this! maybe that!
yada yada
blah blah
Abracadabra
Rah rah! Poof!
Voila!
LPI is worth AU$1.10 pps

Now if you are buying that story then I have a bridge to sell to you... real cheap.

Since this TSI teaser appears on the LPI website I will assume the new stats for the mine are going to be endorsed officially by LPI in the upcoming JORC Resource Report probably later this month.
We're looking at LOM 1,500,000 mt LCE.
The mine's yearly production will be 20,000mt per yr for 20 years.
LCE will sell for US$10,000 per mt.
Operating Expenses are $3,050/mt.

If indeed these are the basic parameters for Salar de Maricunga project then our LIEG share price should look like this assuming we start production in 2019.

Lithium Carbonate Equivalent = 1,500,000 Tonnes
Price Li2CO3 = $10,000 /Tonne
20-year life span of mine LOM = 20 Years
Life of mine Gross value = $15,000,000,000
Tonnes production 100% capability per year = 75,000 Tonnes
Tonnes production 50% w/Conversion per Yr = 37,500 Tonnes
Yield Restrictions/curtailments/quotas (subtract) = 46.7%
Tonnes LCE production capability per year = 20,000 Tonnes
Mine gross revenue per year = $200,000,000

Operating Expenses per Tonne itemized
___Chemicals & reagents $1,615
__________Salt Removal $244
______________Energy $183
____________Manpower $274
______Employee services $305
__________Maintenance $122
______Transport & sales $183
_________________G&A $122
ST Operating Expense per tonne $3,050 = ($61,000,000)
Maintenance per year. See above. = $0
Depreciate Capex of US$250M over 20 years = ($12,500,000) see 2.51minutes into video #16
Revenue after expenses ST = $126,500,000
National Royalty 3% = ($3,795,000)
Local royalties / community payment / Tax 35% = ($44,275,000)
EBITA = $78,430,000
Estimated Income 35% of EBITA = $27,451,000

LPI income per year 50.0% = $13,725,500
Minera Salar Blanco income per year 32.3% = $8,867,000
LIEG income per year 17.7% = $4,859,000

Value of LIEG at Cap Rate 8% = $60,737,500

Number of LIEG shares = 500,121,178
Projected value of LIEG share March 2019 = $0.121 PPS

Interest Rate = 4.0%
Nper. Number of months in study = 22
Minimum appreciation per month per share 4.9% = $0.006 /mon/share
Future Value 2019 = $0.121 PPS
Type (payment at beginning) = 1
Value of LIEG share May 2017 = $0.038 PPS

If we (LIEG) are worth $.038 pps today then Bearing BRGRF is worth 31 times our share price or $1.18 pps

So there you have it. These figures should hold true until the winning bid on the Codelco lithium property right next door to us in Maricunga is announced... then all Hell is going to break loose and you can toss this spreadsheet out the windows after you quickly multiply the LIEG pps by 4 or 5 times as real miners charge full speed into the revised BIG picture like gangbusters for some majorly serious mining. Click Here.

The Doctor

PS, LIEG shareholders, vote NO on the merger with Bearing Lithium Corp and demand our BOD give us their written progress/forecast report before June 1.