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Gold/Mining/Energy : Lithium

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To: Cheeky Kid who wrote (251)8/13/2009 2:09:23 PM
From: teevee2 Recommendations  Read Replies (2) of 1146
 
Ya, what ones to buy that is the question.

Comparing companies on an "apples to apples" basis is not easy. One rational approach is to first calculate each companies lithium resource/reserve on a lithium carbonate equivalent basis-tonnes lithium carbonate (note-grade of lithium mineralization must be converted to Li metal before calculating lithium carbonate equivalent). Then, use recent lithium price to determine "in ground" value and divide by share capitalization. That will yield a price per share and provide a sense of relative value between the lithium players.

For lithium brine players, I also suggest calculating the potash resource in tonnes potash, as the potash can be worth more than the lithium.

There are many other issues that may be considered after determining relative values.

Good luck:-)
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