Great drilling results from Morila today.They have now...

Great drilling results from Morila today.

They have now identified 2 new zones with good grades untouched by historic production.

They are currently working on a new Resource statement and stage 1 LOMP. These new zones will add to our already impressive resource, and importantly “should also result in the conversion of deeper Inferred Resources to Indicated Resources” This is important as it will add to the Mine Life. We get use to lithium mines have 20 odd years life, however most current gold mines would be lucky to average half that. Pushing the mine life out by say an extra 5 years is very significant to gold investors.

I had to laugh, those saying they shouldn’t be drilling & adding to the Resource thus LOM, are the same posters who constantly criticise management for not trying to extract the best share price. You have a 5 year mine life, the SP will reflect that, have a 15 year mine life the SP will be far healthier.

The SP6 price posted by @Mikoffski is quite incredible. $4500/t is a price no one would even have dreamed of 18 months ago when the price was $400/t.

Interestingly Lithium companies haven’t gone up in line with recent Lithium price movements, in fact they’ve gone down. The market either doesn’t think these prices can be sustained, or the recent World tensions have caused investor sentiment to falter.

The consensus opinion seems to be there will be a supply shortage. This is currently evident by the prices. As oil goes up, EV demand will go up. The Western World seems to be stuck with it’s head in the sand. People like Biden keep saying we need to secure our raw material supplies, meanwhile the Chinese are buying up all the projects - Goulamina, PSC, AVZ etc etc. The few projects that are in the US are bogged down by environmental issues. INR is having all sorts of issues with some “Buckwheat” on it’s site in the middle of Nevada (think Sahara).

It would not surprise me if these current prices persist (& even rise) for a lot longer than end users like to think. Much of what I read suggests supply is being overestimated while demand is underestimated.

On the current price of $4500/t (which is a spot, not a contract price), using the table in the DFS for NPV change with Li price change (see below).

Given the DFS was based on $900/t and there’s a $1239.7m per 20% increase in SC6 price,

our $4.1b NPV would increase to US$35b

That’s $35 Billion USD of which we have 40%

That’s a bit academic, although higher prices may last longer than expected, they certainly won’t stay that way over the Life of Mine.

But it does show you the value of the project which is only 2 years away, fully permitted, fully funded & underway.