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  5. LCE: What can you tell me about this security? [Century Lithium Corp.]
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Investment Q&A

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Q: What can you tell me about this security? Notwithstanding Its minuscule market cap, would you take a 0.25% position on it?
Thank you
Asked by Karim on December 01, 2023
5i Research Answer:

LCE has $17M market cap, but no revenue, losses and negative cash flow. Trailing 12-month cash flow was negative $3M. Its Clayton Valley Lithium Project is of one of the largest
lithium deposits in the United States and is located adjacent to Albemarle’s Silver Peak Mine: North America's only lithium operation in production. It has a potential 40 year mine life and is the third-most-advanced project in Nevada. A pre-feasibility study showed capital cost of $500M (expect this to rise), an IRR of 25.8% (good but not great) and a payback of 4.4 years. But note it is a long way from actually having a mine. More work and capital is needed. Insiders own 4%. The stock has not done well, and is essentially entirely dependent on the outlook for lithium. With a small market cap and a loss heading into year end, we would not want a position right now.