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CM, VW have rail links to their Portuguese facility which they've committed to spend a further €500m on. That gives rail and sea freight options to the VW Gigafactory.
https://www.volkswagenag.com/en/news/2021/11/-seat-s-a--and-volkswagen-autoeuropa-connect-martorell-and-palme.html#
https://www.essential-business.pt/2021/11/29/volkswagen-to-invest-e500m-at-autoeuropa/
$70k/t profit when S&P have hydroxide at $73.5k/t as of 18/03. And then simply triple the output with 3 shifts... Tell us more about how processing can scale so easily and run 100% efficient... Should be on the board if you can figure that one out.
Romano/Sepeda and Barroso mines in Portugal are viable near term options to supply Li to Spain, subject to permitting. Portuguese government gets sworn in on Wednesday 30/03/22, should then see the Portuguese lithium tender opened in April according to their Minister of Environment.
+ Volkswagen Group aims to transform Spain into European E-Mobility Hub
+ Total investment of more than 7 billion euro together with external suppliers envisaged
+ New cell factory planned to be located in Valencia, creating more than 3.000 jobs
+ Thomas Schmall, Volkswagen Group board member for Technology: “This project is highly important – for Volkswagen, for Spain and the whole of Europe”
https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-group-and-seat-reveal-electrification-plan-for-spain-7817
Looking at Atlantic Lithium it appears they're only in the data collection stages with regard to EIA. Also, the Piedmont funding comes in for a % ownership and 50% offtake.
SAV is currently more advanced on EIA timeline and a free agent to benefit if pricing remains strong (publicly at least, who knows what is being negotiated behind closed doors).
05/08/21 FinnCap
Scale – Ewoyaa and Barroso are a similar size. Ewoyaa’s resources are 14.5Mt at 1.31% Li2O but expected to grow with drilling, versus Barroso with 27.7Mt.
Valuation – Ewoyaa’s economic model is Scoping Study level and uses US$650/t SC6. The model produces a US$345m NPV8.
0.5x NAV – Our Barroso NPV8 at US$650/t SC6 is approx. US$300m, which on 0.5x NAV would value
Barroso at US$150m versus the current US$82m MCAP.
Summary – The Piedmont-Ewoyaa investment highlights the monetary and strategic value of
Savannah’s Mina do Barroso project. While Ewoyaa has certain met advantages, once permitted Barroso’s European location should warrant a premium rating. Both have access to renewable power.
SAV vs ALL is a fair comparison Glen, I'm sure FinnCap or SPAngel note the similarities in one of their recent reports too.
SAV 27mt vs ALL 30mt. Both Spodumene producers and similar grade yet ALL valuation is 3.5x SAV's. Big difference of course is ALL are funded by Piedmont.
02/02/22 Ministry for the Environment and Climate Action (MAAC), in the next 60 days, the tender for granting rights to companies to start work on the ground may move forward.
60 days consecutive 03/04/22
60 working days 27/04/22
For a more detailed outlook refer to FinnCap 15/12/21 which includes a full breakdown of their model. In summary;
"A conservative US$1,300/t price values Barroso at over US$950m (NPV5), equivalent to 55p. It would produce US$1.5b in free cash and US$400m in corporate tax."
Again with a near doubling of resource and increase in long term SC6 price you would achieve a higher figure.
You're welcome Hospi, although it seems I spoke too soon! Luso have been hit with the same 30 day extension -.-
"It is hereby informed that the Public Consultation period, previously set from February 14 to March 25, 2022, has been extended by 30 working days, thus ending on May 10, 2022."
Curious to see Dave and Sacha both presenting on Wednesday this week. European commission in attendance at Dave's event and EBA/Innoenergy/Northvolt at Sascha's. Paid promotion or not it's encouraging to see SAV is the only EU lithium play at both events.
23/03/22 Future of Transport Conference - Brussels - David Archer
23/03/22 Battery Megafactories Europe - Berlin - Sascha Keen
PS voted against the request to extend the public consultation of the Romano mine in Montalegre keeping the consultation end date to next week 25/03 (item 3.11).
https://www.cm-montalegre.pt/cmmontalegre/uploads/document/file/3598/edital_n_o_15_2022_da__deliberacoes_reuniao_camara_03_03_2022_.pdf
Very positive to see the changing political landscape since the election having effect in the region. Assuming Lusorecursos follow a more conventional timeline they should have a decision Q2/3.
Looking at recent RNSs;
- Savannah expects the decarbonisation strategy to be defined and ready for implementation in Q2 2022
- Further work is planned in Q1 and Q2 of 2022 to refine the process operating conditions and investigate further opportunities to improve process recovery.
Progress is imminent, good day1 to you all ;)
Bob, in response to this "when will it hit them that no materials = no batteries !!!" see the link I shared.
The document points towards regulatory delays which may be contributing to the slow progress in EU;
"The proposal also includes due diligence obligations for economic operators as regards the sourcing of raw materials." ... "the Commission proposal envisages mandatory third-party
verification through notified bodies"
EU material won't be sold until the market understands the EU's new DD rules. Not only that a new step in the process is required for 3rd party verification which adds further questions. It's EU red tape shifting the goalposts as usual. They know very well what the deficit is, they're just taking a very long time to get everything passed. Next step is government lobbying so we can only hope that discussions have been had in the background and negotiations will be swift.
"The EU Parliament has now adopted its position on new regulations for batteries’ entire product life cycle. The new regulation means that negotiations with EU governments can begin."
http://www.iccsino.com/news/show-htm-itemid-16555.html
https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/689337/EPRS_BRI(2021)689337_EN.pdf
Link to the text;
https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/689337/EPRS_BRI(2021)689337_EN.pdf
"The EU Parliament has now adopted its position on new regulations for batteries’ entire product life cycle. The new regulation means that negotiations with EU governments can begin."
http://www.iccsino.com/news/show-htm-itemid-16555.html