RE: Silence is netral15 Aug 2023 11:58
You are saying that for two reasons, first you really don't understand what you are reading and, secondly, it suits your deramping agenda to get a lower buy in price.
If you read and understood SI 5 2023 (asking a lot on both counts, I know) you would see that the rules for the sale of lithium in Zimbabwe and for export have changed. To some extent, the rules are not fully bedded in: in the sense that a literal reading might say and mean one thing but how the authorities interpret them is different.
What the SI implements is the notion of an Approved Processing Plant. In Zim you can now only sell to an APP and you can only export if you have an APP and an export licence. Before selling to an APP, you have to sample your product for grade and then report it to mines dept and who you are selling to and the volume.
Because the rules are new there are only a few APPs.
My expressed view to AB is that we just sell the stockpile to whichever APP will take it and bank whatever cash is available.
SI 5 2023 makes things a bit more complex in Zim but it also opens up a few opportunities to us.
In principle, there is now no lower limit on grade for exporting lithium. Most smaller producers will not want or be able to secure an APP. There are opportunities to buy in product from the smaller producers and then sell on for a margin and if we have an export licence then we can sell abroad at a much higher price.
Given the above, it is likely that some current producers of lithium (maybe illegally) will want to get out.
I have previously posted bits of the above. Go online check S1 5 2023 and the various articles about the lithium market in Zim and Zim Government policy.
What was once very straightforward is now less so but probably the upside is greater.
DYOR
Sign In
Follow the stocks
