RE: Mexico values its Sonora lithium deposits at $600bn24 Sep 2022 12:20
Indeed @tomcat. At $67.66/kg LCE I make the in-ground value of our 1,478kt of LCE at $100B.
"Investor Presentation and Q&A with Cadence Minerals CEO, Kiran Morzaria" (1 Jul 2022)
https://youtu.be/cu1u90A2BDA?t=2453
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Q
Second question, related to Ganfeng. They've recently said that they plan to produce 50,000 tonnes of hydroxide from phase one of the project how does that affect your mining plans in your areas?
A
So we base what we have as on a document - They haven't completed a Definitive Feasibility Study on this plan. Our understanding is that they will be embarking on this to prove that they can do it, and that they can deliver Lithium Hydroxide, which I certainly believe they can from this ore. And then what the mining plan looks like? If the mining plan would follow the same logics and economics as the DFS did, then what would happen is that our area would get mined earlier because suddenly you're not doing 35,000 tons of lithium carbonate a year, you're doing 50,000 tonnes of lithium hydroxide so you would see our area come forward in the mine plan and therefore would have a far higher value because the NPV would increase.
Q
Final question on Sonora which relates to royalties and ownership. The question is, given the royalties on Sonora do not appear to affect Cadence JV areas does this make the JV areas more attractive to mine earlier and would you consider converting your JV holding into a royalty over the areas or the whole project?
A
So yeah our area doesn't have the royalty and as not having the royalty it's a lower cost, but it's not enough of a lower cost to make a significant difference to the mine plan. There's a large amount of overburden in our area so therefore it doesn't make it significant or material difference. It's not going to move it to year one of mining, it might move it by six months or something like that but nothing material. Whether we would convert our JV holding into a royalty over the areas or the whole project? Yeah, for the right price of course we would. As we've shown we would convert ownerships into many structures: whether that be cash, and more recently where we've converted our ownership into equity. So royalty or any other derivative ownership of the entire project is fine for us.
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