RE: TradingView17 Aug 2022 10:32
Just a post from HC EUR thread :
Hi. To answer your question, what if BMW supply agreement doesn't eventuate... Great question! I've asked about this, and here's what I know, per report given by one of my advisers yesterday.
Mercedes is right behind BMW if they back out from EUR. VW too apparently, not sure if that's just passing comment, phone call or email, but I'm told definitely Mercedes has formally enquired - which answered my question why an exclusive deal with BMW for first offtake.
DFS first before financing. I've asked, and the consultancy is confident next month, although my report says "most likely" based on 12mt as opposed to 9.7mt, although it made me question about the other side of the hill but it doesn't bother me personally just get something out I reckon so we can all get on with our budgets, drill the other side later and improve BFS from there. Apparently the South African consultants couldn't travel to Austria to finish the job (DFS) due to Covid... but early release of something so MoU can be announced. BMW wants a level of certainty of the quantity LiOH, grade and project timeframe as would be expected... but construction is going ahead, with or without them, community permitting with blessing from officials.
The report also includes a mention of intense competition to secure future lithium supply, there's not a lot of sources, supply can't catch up with demand. BMW is trying to secure supply from 2025 onwards, and getting their hands dirty at mining level. This didn't use to happen as it was the battery makers who deals with mining companies but car manufacturers have to act or lose out. This explains LiOH trading at $70k, and projected to even past $90k/tonne (cost forecast in feasibility of supposed $25k/tonne). All the current mines must ramp up now to accommodate future demand, and that's not even going to touch the sides.
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