Aug. 27 at 6:59 PM
$LLKKF 938 characters:
Why I believe
$LLKKF is undervalued:
When Lake traded near
$1.70, LiLAC’s Kachi technology was still largely unproven. Today, recovery is ~90%, LiLAC owns 20% and can earn 25%, Phase 1 targets 25,000 tpa, and Gen-4 uses fewer wells, modules and less power. Capex fell from
$1.376B to
$1.157B, while Phase 1 post-tax NPV is
$1.011B.
Kachi’s 11.1Mt resource provides room for a potential second 25,000-tpa plant, taking total production to 50,000 tpa. That upside is not included in the Phase 1 NPV.
Near-term catalysts: public consultation closes Aug. 31, with the Environmental Impact Declaration targeted by Sept. 30. Approval is not guaranteed, but it would remove a major regulatory risk and strengthen financing discussions.
At roughly
$0.04, the market is pricing substantial failure. If Kachi is permitted, financed and built, the rerating could be significant.
Disclosure: I own LLKKF. Personal analysis, not financial advice.
