Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Core blimey,
https://www.electrive.com/2022/01/24/ganfeng-lienergy-opens-10-gwh-battery-plant-in-jiangxi/
Ganfeng LiEnergy opens 10 GWh battery plant in Jiangx
This is the second phase of the factory, which now covers 330,000 square metres, according to Ganfeng Lithium’s WeChat account. The factory has production lines for prismatic lithium iron phosphate batteries, pouch cells as well as solid-state batteries
The production of solid-state batteries is apparently not only a preparation for coming product generations: According to the report, 50 Dongfeng E70 electric cars equipped with solid-state batteries from Ganfeng LiEnergy have also started demonstration operation in Xinyu.
#####
don't worry if it's not apparent, it's never happened before a lithium rush - no history so nothing reliable to base your expectations on - that's how j curves happen.
I forgot I'd concluded this in that thread @EV!:
https://www.reddit.com/r/CadenceMinerals/comments/qtpwkw/comment/hli1xa1/
===[
For a similar mine footprint and water usage to the Sonora 17.5/35ktpa a similar optimisation & efficiencies as applied to LAC, and shared with Ganfeng through the SCA (assuming Ganfeng aren't actually still working directly behind the scenes on the Thacker Pass project), would result in Sonora production rates of 23/47ktpa - perhaps rounded up to 25/50ktpa.
]===
All hypothetical, but I wonder how likely? I haven't compared the PFS efficiencies of Thacker Pass with Sonora's DFS efficiencies - perhaps Thacker Pass started off incredibly inefficient so had more to gain percentage wise? If they are of a similar starting efficiency, remind me to be keeping an eye out for 90ktpa, rather than 80ktpa, which I previously had in mind! Either 22.5ktpa + 22.5ktpa + 22.5ktpa + 22.5ktpa or 45ktpa + 45ktpa LCE.
For the purpose of progressing the project it might be desirable to avoid the question of royalty by striking a deal with us and starting the South of the Pit first if the economics are there - it's the middle bit which has the overburden that @Kiran mentioned, not the South Pit part.
Even an optimised/expanded 22.5ktpa + 22.5ktpa operation with say an average 45-85% of the additional ore from the JV area would double to treble the total of 72kt LCE currently planned from the JV area. Roughly ((5ktpa * 4 years) + (10ktpa * 15 years)) * (45% to 85%) = 76.5kt to 144.5kt of additional ore; likely doubling or trebling whatever the NPV associated to KDNC is in the currently mining plan.
But I suspect Ganfeng will go Thacker Pass big - targeting 80-90ktpa. And THEN we are talking! ;-)
Ob.
https://tinyurl.com/386nhh4d
Spearmint discovers lithium in all 10 out of 10 drill holes from its phase II drill program including its highest lithium drill core values to date of 1840 ppm Li & the best intercepts achieved to date with an average lithium value of 966 ppm Li over 220 continuous feet, including a high value of 1490 ppm on the Clayton Valley Lithium Clay Project in Nevada
Sonora - the jewel in the crown!
A lot of discussion on the Sonora expansion here
https://www.reddit.com/r/CadenceMinerals/comments/qtpwkw/bcn_rns_sonora_project_update_ganfeng_expansion/
"The Chinese company in March announced an ambitious plan to increase its lithium production capacity roughly fivefold to 600,000 tonnes of lithium carbonate"
https://www.reuters.com/article/us-ganfeng-lithium-placement-idUSKCN2DM2U0
The dealer wont want that car sitting on his forecourt forever,sooner or later he will do a deal to shift it.Simples.
Yeah I know he worded it carefully (I would do the same in his position) I am confident that he’s aware of the details of it though.
Thanks
@EV, What he said was that.... it's their understanding there are no royalties. Bearing in mind KM has highlighted on a few occasions the fact this deal was done before his time, perhaps he isn't aware of it. I'll ask.
Good work on the Reddit site btw.
What's the demand forecast for LCE 2025, 2026, ...2030?
A good place to start - begin with the end in mind!
I'm sure Ganfeng thinks that way!
Battery tech has reached the price parity point to displace ICE, well if you are Tesla or BYD at least for now,
What if we have something else up our sleeve to offer a deal to ganfeng….we’ve got lots of fingers in pies now
When I investigated and looked at the court filings and company filings it was clear to me that only some areas had royalties on them, I know some (including yourself) disagreed at the time but KM also said no royalties too.
Maybe they haven’t updated it yet, they are not exactly speedy
And that's a strange one too. BCN's AIM admission document clearly states royalty payable on the JV lands.
Keep in mind how much money REM have actually put in to the JV areas, posters here will know exactly, but I believe only ever about $2M.
If what Keiran 'understands' is correct and there are no royalty claims on the JV's that could have a bearing
@Bannor...Nope BCN.
@Dallas "Worst case" scenario from my perspective is they decide to plonk a 40ktpa mining operation on our JV and do a cash call of the JV for circa $800m. We'd be on the hook for 30% of that which is circa £180m and we'd probably be able to fund with circa £50m equity, £130m debt or thereabouts. Pretty sure if this "worst case" scenario were announced we'd rocket and in today's Lithium market funding this would be a breeze, and if not us, under the hammer to the highest bidder :-))) i.e. the worst case scenario of them trying to out us via a large cash call isn't going to work IMHO. And if we can only raise half of the required amount, then from @Kiran's reply I take it we would be diluted. 15% would still be an excellent outcome IMHO!
@Dallas..... wasn't the comment about them wanting it for nothing in relation to a sale of the Yangi JV's to Hastings?
This was my previous reply...
"For my 9th year here it would need to be an obscene amount for them to take the lot off us.
A proper JV partnership and expansion into our areas of their revised mine plan would do me fine."
So, would you like to spare a thought on possible ways Ganfeng could potentially put a spoke in our wheel?
Well, we are now dealing with Ganfeng not Bacanora an entirely different prospect so I think some recalibration is needed.
They are putting hundreds of millions of dollars in to this, it makes sense for them to try to do a deal before they invest and make it more valuable.
What valuation do you put on the Sonora JV? I personally think some will be surprised by it's potential value. KM believes it is worth more with Ganfeng at the helm and I agree with that (due to the unannounced scale up that is inevitable in my view).
Evening @Obs, that's fine, I was happier with the 6 month time frame he gave himself in 2018 to achieve the operational JV agreement though! Same question to test your knowledge..
From Ganfengs point of view try to find the cheapest way to get us out?
@EV...I have said from the start that they will want to buy us out....Just a matter of how much and what they could possibly do to reduce it.
They wanted to do a deal 4 years ago but... quoting DS...They wanted it for nothing and we didn't want to let it go for nothing.
Yes why buy the extra 500 hectares otherwise
Doing so would increase the NPV of the KDNC share of the project substantially. For example they may want to have two pits from the start meaning the JV is mined from year 1 for example.
It would not have made sense for Bacanora to make a deal 8-9 years out, what I am suggesting is that Ganfeng will want to mine this area sooner so it is now more pertinent and they will want to do a deal to buy it before announcing their expansion plans.
Other than seemingly not wanting to believe that 17.5ktpa is history until they are told it's history, I was very happy with the clarifications @Kiran gave around the JV's @Dallas!
The toll treaty he spoke of, we've been trying to get since 2018 as part of an operational JV agreement...without success. Why? Whilst I agree with some of your points, try looking at it from Ganfengs point of view and try to find the cheapest way to get the flea off the Gorillas ass lol. KM has already stated the exploration JV agreement we have is 'loose' at best.
Still looking forward to see how this plays out...