In the chart above, updated for market close, New York time, on 4/6/21, Cypress Development Corp. (TSX-V: CYP.v) / (OTCQB: CVDVF) is trading at 6.1% of its PFS-derived, after-tax NPV(8%), assuming a LCE price of US$11,875/tonne (vs. an average LCE price of  US$12,070/tonne from the eight listed peers). By contrast, peers are trading at an average of 41.6% of [Enterprise Value (EV”) {market cap + debt – cash}] divided by after-tax NPV.

Please read the footnotes at the bottom of chart. Note: Not all companies own 100% of their flagship projects, and some companies control more than one project. Peer EVs are adjusted to reflect these factors.

CYP is trading at a 85.5% discount to the average of the eight peers. If CYP’s share price were to quadruple to C$4.72, and peer valuations were to increase by an average of +50%, CYP would still be trading at a 61.2% discount (on an EV/after-tax NPV basis)….

Not on the chart above, but I’m also tracking an additional four PEA-stage lithium juniors trading at an average EV/after-tax NPV ratio of 33%. So, Cypress is trading at a steep discount to these four earlier-stage juniors as well. 

Notice the ratio of after-tax NPV to upfront cap-ex for each company. This is a relative measure of a project’s capital intensity, the higher the better (more NPV bang for cap-ex buck). The eight peers have an average 2.1x ratio of NPV/cap-ex. Cypress has a 3.3x ratio, which is second only to Neo Lithium’s 3.6x ratio. 

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