LOL I know..
I am glad people are doing the numbers.. It is what I use to do back when we were a a few cent company... Its what kept me somewhat sane.
I feel that keeping things simple and easy to understand for those trying to get a grasp and learn is important. There is no need to overcomplicate things as my extremely patient friend Joe reminds me and @Upstart777 reminded me recently also... But I will speculate
Plus I do like the finer details such as working out how much revenue could be allocated to each of our shares.
I just would like to document a few things here...
The consolidation ended up how some in here predicted.. @bobsacramento regularly presented and I dismissed it in the hope that the company had a surprise up its sleeve.
It sounds like BlackRock demanded it for their investment to take place..
So whilst it sounded like good times were ahead once it completed we ended up greeted to the big end of town being dragged into a side street and beaten within an inch of our life because someone got the idea of carrot farming entitely wrong..
Friday was us getting up off the floor all in a daze wonder WTF was that?! Meanwhile I am still laying there hoping for a little mouth to mouth from Anthony
Whilst I was laying there I have been thinking how much it might cost to produce 1 tonne of lithium from a DSO and what affect it will have on the lithium price..
I haven't seen anyone produce ant numbers on the cost to produce but I'll give it a go whilst I am being driven to Newcastle for a surprise weekend away.... There better be wine or there will be whine!
So, if it is 72 tonnes per 1 tonne of lithium the cost to pull the ore out of the ground might be around $15 per tonne if we consider what Rio Tinto's costs are to produce 1 tonne of iron ore. But I think this is a very low ball figure.
So that cost per tonne lithium carbonate might be $1080 then they need to ship it which is an additional $50 per tonne which takes us to $4,680
The usual practice has a general rule of 8 tonnes of concentrate to 1 tonne of lithium carbonate.
To put a bit of perspective by comparing the size of both operations let's talk in trailer loads.. With an average car trailer being capable of carrying 750kg
The usual method would require around 11 trailer loads... Where as the DSO would require 96 trailer loads... That's an extraordinary difference to the usual practice and highlights how desperate the market is to produce more lithium.
The most expensive production from a converter I understand gets up to around $4,500 but this isn't a normal process and I am just guessing that that cost might be doubled or even tripled so we might end with a total cost for DSO of US$15,000 to US$20,000 per tonne... Or in Australian speak around $20,000 to $26,000 smackeroos!
The other thing to consider is what the quality of the final product might be.. I am thinking it might be very low grade that's if it is at all possible and I cannot work out if it would be profitable whatsoever.. To me it sounds like a loss producing exercise..
The DSO is a sign of desperation rather than any type of threat and it's likely that it will push any pricing for lithium from this moment up which should bode well for all companies that can produce with the explorers and developers riding on our very comfortable coat tails.
