Q4: Following on from that then, why have European Metals Holdings chosen to use sodium sulphate roast and not the L-Max process as used in the scoping study?
A4: Sure, we commissioned an independent study to look at this specific comparison, there’s about 6 processes that we investigated for Cinovec over the past 18 months and narrowed it down to these 2 processes, the sodium sulphate roast and the L-Max process we used in the scoping study. The independent study, that we commissioned at the end of last year, demonstrated to us that the sodium sulphate roast was going to be cheaper for us, both from the point of view of capex and from the point of view of opex. Now, it may not look like that when you compare the L-Max numbers, which were scoping study numbers, with the sodium sulphate roast numbers that are currently PFS numbers but the difference there is, as I say, the two factors of the bio product credits and the overall increase in cost.
So, sodium sulphate roast is the way we’re going, it is better for us from a capex point of view, from an opex point of view, speaking with people in the industry like we have now it’s more acceptable to them and is a less complicated process.
I'm not filled with excitement at this stage either, though there's currently no reason to sell out until the facts are clear.
In regards to the "there Is not a lithium supply shortage" comment he could be referring to the possibility that new market entrants could meet demand over the next ten years.
LIT Price at posting:
8.3¢ Sentiment: Hold Disclosure: Held
(20min delay)