RE: No lithium oversupply in 20187 Jan 2019 21:33
Hey Bonker its a small project compared to some but it does have quality. It's a very clean Spodumene material which could be the envy of many a project thats not spodumene, as it is the go to for Hydroxide and becoming the stronger material for batteries. There has been chatter of poor quality grades and lack of battery quality in current producers, so its important not only to have the right product of the moment but one that you can assure is of battery grade. That can make the difference in price when poor quality is taking a hit (see Orocobre crap spot price Carbonate junk, or even Galaxy producing less than 6% spod) the cream will float to the surface.
Another advantage of keeping it small is Mcap vs funds needed for a project, easier to fund an easy cash generating project needing $120m than one with same or worse IRR needing $450m.
First 6 months of this year price will be based on the progress of Portugal Lithium to mine decision, the others are only icing on the cake if they provide anything. To note that the PFS in Moz moves us from 20% to 35% over night in that project so value to ba had on that alone (due Q1). Project is easy compared to the likes of Kenmare knee deep in mud, this is scrape off the surface material for 30 years..... sound economics and the product has improved in price in the last year so PFS should be better at base case.