Neogen for long term#neogen
Neogen is a good stock for long term folio.
Already holding.
Will add more @1420-1350.
#vr
Lithium
Opportune Time with tremendous upsideI wish I had found this company sooner!
But as they say, hindsight is always 20/20.
All of the fundamentals point in the right direction:
-I like the fact ~33% of stocks are internal ownership. Often times, as another contributor mentioned, executive management take higher pay cuts and have less stake (shares) in the company without the shareholders best interest in mind.
-In this video the chairman Ian Stalker describes the benefits of the Falchani discovery in south eastern Peru. He also mentions that the current market cap does not reflect the size and scale of the company. Lots of upside and much higher valuation to comparables. www.youtube.com
-Peru ministry of energy & Mines and elected government highly supportive and are working to ensure future uranium-lithium production in the country
-Volcanic host rock= No Li minerals = easier extraction= lower production costs
-Li demand growth driven by E-Vehicles; for every 1% E-Vehicle penetration = Li growth of 70,000 t LCE per year (Morgan Stanley)
-Growing uranium demand: Global demand for electricity to grow by >53% by 2035. The rise of nuclear energy. ( World Nuclear Association)
-Uranium recent supply discipline/erosion: Kazakhstan reduction (10Mlbs/year). Cameco reduction (~25Mlbs/ year at McArthur-Key and Rabbit Lake). AREVA reducing Niger production. Langer Heinrich reduction (mining stopped)
My assumptions are that they would have margins of around 6000/t for Li and about $10/oz for Uranium. If they get to around 20,000 tpa for Lithium and around 5 MOz for Uranium, then we can see pre-tax numbers of $170M for PLU. I know the series of assumptions, but they look reasonable at this point. I am assuming a price of $30 for Uranium and Lithium to continue at the current levels of $16,000/t. Perhaps conservative on both fronts. So a M.Cap of $1.5 to 2B is pretty much on the cards about 3 to 5 years down the line. So a 20X allowing for some dilutions along the way.
I highly suggest watching this video on the insights of PLU.V www.youtube.com
