Strange, Mineria Chilena is_reporting_SinoChem_is_looking to_buy_into_SQM. Mineria Chilena is reporting this morning that SinoChem is yes, they are pursuing a stake in SQM... or at least pursuing something in Chile related to lithium I would assume Click here for October 24 story.
Dear Mr SinoChem, Clearly you are looking to buy something lithium-based in Chile. May I suggest that you buy a nice sweet fresh lithium exploratory (sadly we are not competent miners) company called LIEG just ripe for the picking now before Sebastian Pinera wraps up the upcoming Presidential election and everything in Chile lithium-related triples in price overnight.
Today we (ie LIEG) are worth the bargain price of $.074 PPS. I would venture to further say that a "as-is" price (cash plus stock) for all of the NewCo JV in Q2 2019 would be $1,030,000,000 (based on a 7% cap rate) if you are interested in such esoteric calculations/projections.
The "current numbers" for LIEG follow: Lithium Carbonate Equivalent = 2,150,000 Tonnes Price Li2CO3 = $14,000 /Tonne Ref click here 26-year life span of mine LOM = 26 Years Life of mine Gross value = $30,100,000,000
Tonnes production 100% capability per year = 83,000 Tonnes Tonnes production 55% w/Conversion per Yr = 45,650 Tonnes (This could go way higher in our favor if we had a more experienced miner… eg not LPI) Tricky Dicky Fudge Packer factor (SUBTRACT) = 46.0% (This could go way way way down in our favor under President Pinera) Tonnes LCE production capability per year = 25,000 Tonnes (Salar is so deep that we could easily go 80,000 tonnes if allowed without missing a beat) Mine gross revenue per year = $350,000,000
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 Operating Expense per tonne $3,050 = ($76,250,000) Maintenance per year. See above. = $0 Depreciate Capex of US$257M over 26 years = ($9,885,000) Revenue after expenses ST = $263,865,000 National Royalty 3% = ($7,916,000) Local royalties / community payment / Tax 35% = ($92,353,000) EBITA = $163,596,000 Estimated Income 44% of EBITA 44% = $71,982,000
LPI income per year 50.0% = $35,991,000 Minera Salar Blanco income per year 32.3% = $23,250,000 LIEG income per year 17.7% = $12,741,000
Value of LIEG at Cap Rate 7.0% = $182,014,286
Number of LIEG shares = 556,124,331 Projected value of LIEG share March 2019 = $0.327 PPS
Interest Rate = 5.0% Nper. Number of months in study = 16 Minimum appreciation per month per share 6.0% = $0.020 /mon/share Future Value 2019 = $0.327 PPS Type (payment at beginning) = 1 Value of LIEG share October 2017 = $0.074 PPS
The Doctor
PS, I hope you guys are having a nice time in Santiago. We love having you Chinese in Santiago with your big fat expense accounts and expensive tastes.
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