Peter Secker15 Oct 2018 08:24
In our view, the long-term prospects for lithium carbonate prices remain strong. However, prices rarely increase in a straight line, so occupying a position on the industry cost curve that is well below those projects that operate close to or at the marginal cost of production is key. Sonora will sit in the lowest quartile for operating cost, marking it a stand-out proposition. Blue-chip institutions of the calibre of RK, SGRF and Hanwa have recognised this and have offered us development capital on attractive terms. Advanced discussions are ongoing with other potential funders, both at the corporate and project levels. We are confident that the outstanding funds will be secured which will enable us to move into the construction phase at Sonora. With this in mind, I look forward to providing further updates on our progress, as we focus on realising Sonora's potential and in the process closing the huge disconnect that has opened up between the Company's market capitalisation and our flagship project's US$1.25 billion valuation."