MGX Minerals Inc (MGXMF)

[Azzzx]

Ok. PLEASE CHECK MY MATH.

A 750bpd installation (one commercial unit), if we use 55 gallons per barrel = 41,250 gallons per day.

At 5lbs per 1000 gallons, one day would produce only 206 lbs. 30 days would produce 6187.5 lbs or 2.8 metric tons. At $16 per metric ton, this would be $45k per month, before refinement cost and operational cost and assuming market price for Lithium stays equal to $16k per metric ton.

At $45k, this price is then further watered down by other cost, like refinement and monthly maintenance, so, maybe their profit would be around $20k per month. Even if water treatment was include, I would not expect more than a few thousand dollars month, which might cover operational cost. So, maybe they would have a profit for one unit of $20k to $30k per month, which is awful (assuming my math and assumptions are correct).

If this is the best that they can do, I would not bother investing in this company. It would take thousands of installations and many years before they would be considered to be a profitable and viable investment. Worst, is that if there is a small drop in Lithium price, this company would disappear overnight.

I am really hoping my math shown here, is either incorrect or the assumptions incorrect and that my original calculations are somewhat close to reality.