Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Good to see you are keeping your mind open to the future dynamics of the lithium markets Daz.
Good luck guys, I know where I am hoping the pegs line up.... and I know where I will be looking to get the early indications of these.
Ok Daz... line drawn under my response. In my opinion If we can sell our spodumene to a supplier of tier 1 battery manufacturers then we will have a minimum of 30% premium above current spot prices.... probably more given the 30% premium currently available is before demand really takes off....
If our Lithium is t2 or less then any premium is uncertain but not impossible given the resurgence in LFP as cathode mic....
if we only make industrial grade we are bust....
Btw.... there is no Yes or No.....
You dont need to follow him Daz. You can listen to his podcasts and read his stories on global lithium.....
I'm not bothered that you think his info is bull.... you can follow morgan Stanley, who for the past couple of years have been contrary to Joe's. Even Morgan Stanley are pointing to this split in the lithium markets caused by demands for different qualities being at different places.
Anyway.... my opinion stands. We will not know the sale price of our lithium until we agree a sales contract with someone. Quoting the current chinese spot price is as irrelevant as me declaring we will get a 30% premium on this..... we wont know until pen is put to paper....
By the way, the right side of human brain does regression better than any mathematical model. Call it animal instinct, a guess what ever but it works.
Not sure Daz, as might be obvious from my last post, he tends to make statements in intermediate chemicals prices. He is also very truthful about the risk to the rest of the lithium Market of this skewed demand and price .... I.e. mines that can only produce 30% at higher quality will be dumping the other 70% on a industrial product market that isnt seeing the same demand increase.... so it is likely the price for industrial product quality will collapse.... unless it can be upgraded in another processing plant...with the additional costs associated.....
You say he is paid to pump Lithium.... but I always find he provides enough detail to support his viewpoints.
Quality is king... and the significant growth is going to be in the high end stuff.... which means price disconnect... if this seems like an alien concept to you I'm sorry....
BTW... for comparison, you have the same constraints in the Crude Oil market, which is a mature and well documented one. If your basket of products meets the spec of Brent crude, it achieves those prices... if it is like Venezuelan heavy oil then it is traded at a significant discount.
Daza, you are asking for an econometric demonstrationt.
To calculate expected demand you have to add all expected demand by date which is not available only forecasts are used with an error margin. The same could be said on the supply side.
At the moment, expected surge in demand plus constrained supply mean hard future contra ts.
As I've said before. Follow Global Lithium podcast... Joe Lowry, who has been working in the lithium market for 30 years has stated on many recent occasions that he personally knows that T1 battery grade prices are being maintained in Japan and Korea, with contract for hydroxide at 12k compared to the chinese benchmark of 9k.... I'm not making it up and im quoting an industry veteran who claims to quote actual contract values.
Also benchmark minerals just ran a week of lectures in all things battery. This price disconnect was mentioned more than once.
You can subscribe for free and watch them all at your leisure..... all in the name of research.
Daza, those contracts are from the past. The new contracts have to factor in the expected surge in quality lithium demand and constrained supply. They are future contracts.
All the macro good news and the sample good quality and some people think we will be selling to t2. Rock lithium is only 15% of the world production it can't be spent on toys batteries it has to meet the demand from t1 market at a premium price.
There is demand NOW for high quality battery grade lithium from the tier1 battery supply chain.... supporting higher price contracts in this area. The question is will we produce that grade.... and I think we will see the answer to that in whether or not we get funding agreed this summer. If we are only selling to tier 2 then you might be right Daz, although even in that case I can still see new mines needing to be in production before 2022.... therefore funding would be needed very early 2021.
Enjoyed the SP lift on friday, will be nice if it is followed up with some news. GLA.
Here's a couple of predictions for you daza which you'll rarely get from me but I'm happy to provide you with on this occasion:
1] The KOD C1 costs that you have presented will be lower by Q4
2] The SC6 prices that you quote will be higher by Q4
Do your own research (which I'm aware that you know your onions so to speak). Good luck and I sincerely hope you can turn your losses from both MLL and KOD into decent profit's.
I'm still thinking 2020 for spade in the ground, H2 2021 for limited production but certainly feasible to slip later. The proof in the pudding in that respect will be the 3 year OTA which will give the initial NPV overview.
Anyone who says "game over" with an absolutely fatalistic view causes me to express surprise that they are still invested. Friday spike offered a high of 0.112p at one stage which anyone with such a view could have limited losses vs their previous position within any reasonable sp avg of that spike.
Unless of course the money they have on the table is of no consequence or indeed a contrary view is held at the back of one's mind.
Anyone still holding after Friday has a reason for doing so and I can't believe the reason is simply to watch the remaining value they have evaporate.
Geme over?
Not quite IMO. Some challenges ahead and lets see where we go from here.
I'm holding 92% of the shares I started Friday with. Still a hold for me.
When you say "game over" do you mean the "company" will go bust and shares become delisted?
Clearly there is some interest following yesterdays movement which after being in 4 years wa a big surprise as there have been many false dawns.
That's to the good BiB we can't push for a faster start and moan about spod value pre demand growth in the same breath.
Still a long way to go and I personally hop Friday's SP movements allowed you to adjust your position in terms of capital exposed per share owned.
GLALTH
It is 2020 not 2021 and she not he.
Translation from a french article to English
The Bougouni lithium mine will soon start with production of 1.94 million tonnes of lithium concentrate over a minimum life of 8.5 years. This is what the feasibility study published on Monday by Kodal Minerals reports for this project it is developing in Mali. Investment amount: $ 117 million. The start-up is planned for the second half of 2021.
The Minister of Mines and Petroleum, Lelenta Hawa Baba Bah, expressed his optimism regarding this project in an interview broadcast by Malian television (ORTM). Mali should eventually be able to manufacture lithium batteries using 3D printers.
It should be noted that Kodal Minerals has applied to the Malian authorities for a mining license. Pending receipt of this license, which, subject to funding, will allow construction to begin, the company plans to continue exploration activities to increase the resources of the project.