Here is why Remini believes it will hit $1.82...
The Model makes the following assumptions:
1. Force Energy Corp. will raise funds for exploration/discovery of a reserve and to
continue as a going concern as and when necessary for equity
2. Only the Zoro 1 claims are considered
3. Only the reserve of lithium is considered for resource value
4. Grades of .0945% lithium are considered for book value
5. PPPS consideres projected cashflows
6. Total Undiluted tonnage
7. Specific gravity of rock in Canadian Shield is averaged at 2.68
8. Only historic reserves are considered
9. Value of ore based on lithium priced as per May 2011 contract price
Infrastructure available near the Zoro 1 site
• Recently negotiated prices for the sale of raw lithium
• Recently negotiated prices for the sale of lithium carbonate
• Higher than Average Operating Costs as compared to competitors
• Transportation costs to the nearest facility
• Expansion of resource once mining under way
• Expansion in number of properties in region
• Costs of raising equity capital to build the required infrastructure
Projected Price Per Share Estimate:
Since all estimates are for known data and do not consider unknown reserves, we can rationally
expect the Company will, at this time, look to selling its resource via JV with a major mining
company, an outright sale of the asset, or a takeover rather than developing the resource itself.
Any of the above scenario will likely require a discount to market. If we conservatively estimate
a discount of 30% to book value, and add in a premium for the unexplored dykes, we arrive at a
value of $1.82. If we average the value derived from cash flow calculations and book value, we
arrive at a value of $1.833. We therefore estimate the Projected Price per Share Estimate at:
$1.82
