George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Trek, did you read the unaudited annual results to March 2023? they show gross margins rose back up to 47% - this implies the gross margin in H2 was significantly over 50%!
Caveats too.
GLA!
Mining takes a long time - but TGR has gone faster and made more progress than basically any other ex-China Graphite company since 2017 and being listed has been one of the main reasons it has been able to do so, alongside a strong business model with a modular development approach designed and executed by the founders and management team - TGR is a rare business that does what it says, overcomes hurdles it faces through innovation - it isn't instantaneous, but look across industry which is littered with massive delays and cost blowouts, TG is a welcome break on that front.
Value is achieved over time and TGR is on the cusp of recognising it at the scale it has achieves thanks to sensible investments and cost discipline - just look at many other companies with massive boards and costs through the roof yet no actual progress on the ground. Many of those projects remain at least 2 years from production. If sales are ramping up then very happy days ahead.
BAT knows this and saw the opportunity that TGR has given that is has massive experience in actually doing business in the Graphite world. Perspective required!
GLA
Savannah has a massive amount of uncommited Lithium spodumene just waiting to be secured by an offtaker. I could imagine a deal very similar to ALL's with PLL could be on the cards for 50% of it, however, on slightly better terms for SAV owing to location etc.
GLA
It enhances the visibility of the need to diversify supply chains away from China.
China is the largest graphite producer globally and dominates over 90% (close to 100%) of further downstream processing of graphite in order to produce anode material for electric vehicle batteries. I'd say it does have something to do TGR, as one of the largest ex-China sources of Graphite in production globally right now, many customers will be looking to diversify outside of China for supply asap and TGR should be sitting right at the top of the very small available list of producers.
GLA
Will be sensational if and when the Company releases an announcement showing where its going - some people who have done research see it clearly, just look at the trend from results and what happens at the guided production figures.
No point giving air to those who refuse to engage with research and clear indicators in results imo or even try to do maths at 30,000tpa or c.6,000MTs a quarter....
GLA
Some are focussed on the fact TGR has been building capacities and obviously investing in itself so that it is now positioned as one of the top 3 largest global producers outside China and the cash that has taken up. That's fine.
But, lol if you are still focussed on that and can't see based on the unaudited trading results released for the year just gone where TGR sold c. 4,000MTs, what happens to the bottom line now where TG is selling easily over 2,000MTs a quarter and has targeted over 6,000MTs a quarter from this quarter about to end (April to June) now it does not have to invest in capacity as it has reached 30,000tpa.
If you aren't focussing on that story then you are looking in the wrong direction imo! The benefits of being a current producer in this market will become apparent as others struggle to secure finance and as TG hoovers up market share early.
GLA
Unsure, but I think the more exciting question is who is in a position to serve the growing markets outside China!
https://twitter.com/Tirupatiuk/status/1673938314339012612?s=20
GLA
Https://twitter.com/tirupatiuk/status/1671760426990997505?s=46&t=Kd9oN7lEXrwqvOg2hyHmPg
Interesting tweet
GLA
Excellent to see - investors now beginning to pay attention - such a long way to go and we are essentially at the start of the journey with no serious swing up yet had - all to play for as soon as we start to get those next big ticket news items come through. Based in Western Europe, don't be surprised to be surprised imo, there's a reason DF wanted this study out ASAP imo.
GLA
Not sure astro but looking very good on the chart and company is at its most significant stage so far as discussed before. Q2 figures hold the key and I expect given many comments on here and Twitter etc there are many people looking at entering and waiting good news. TGR operating extremely well per the last set of results, and have indicated strong guidance for the next period, just use your own eyes imo and do your own research!
GLA
As we progress through the year now many will be looking forward to the next updates from the company. Certainly lots to hear about, from Madagascar, Mozambique etc.
Some good buying toward the close, as we reach the end of the first quarter of this new FY. As mentioned before, if TGR is able to deliver anywhere near its targets this quarter and indicates similar continued guidance for rest of year performance this will be huge for TGR's journey.
GLA
I have seen others use long term pricing assumptions for Spodumene of c.$2,000/t - but ofc we know the spot price is higher and the EUR news placing a floor price of $3,000/t is very significant. I think SAV will be able to achieve a relative premium for its product as in terms of margin there is much less to worry about for payments terms, shipping and logistics costs, plus ofc cost of production thanks to hydropower making up much of the electricity supply. Either way a c.$2,000/t pricing assumption is very very much higher than the initial scoping study's $685/t, anything achieved higher than that on top is an added bonus!
GLA
Am not too sure about Urbix's progress Andii - they have received quite a lot of press in recent years and have made noises about partnerships with other potential future Graphite producers, including BAT before TGR's acquisition.
GLA
Featuring in the FT
https://www.ft.com/content/134d5248-d001-44fe-9a67-0d01361c0da3
Truly huge moment for Europe - expecting the company will be receiving a lot of inbound inquiries today for partnerships and potential supply arrangements - Europe's largest spodumene resource and first real prospective simple-process conventional hard rock Lithium spodumene project in Europe to positively progress
GLA
Link to updated corporate presentation:
https://www.savannahresources.com/investors/presentations/
Have seen about 3 emails from SAV this morning, they're on it. Can't wait for the first sniff of partnership/offtakes to come through