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06/01/19

17:05

Post #: 37038377
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Originally posted by RBradley1980: ↑

The capital cost of the system is only one aspect, there is the opportunity cost of not feeding your electricity cost into the grid. Using an average market rate of $0.25 per kW avoids both issues of calculated asset costs and forgone opportunity cost from usage, storage, feed-in tariffs.

The future is actually quite certain. EV adoption WILL increase. Therefore, where will you invest in ?Maybe GXY is approaching fair value at 10 times earnings but bare in mind that the lithium price is still falling, I would have to assume that once the lithium price stabilizes we may see a repricing back to 15 times earnings but by this stage the wildcard will be the grand battle between hardrock and brines for marginal supremacy.

In all honesty I know SFA about the economics of hardrock over brines but the preference of the worlds second largest lithium miner for Australian hardrock assets over Chilean brine ponds tells me there is a competitive advantage here, hence PLS is my main lithium play now.

Australian producers, who extract lithium from hard rock, are increasingly viewed as the cheapest producers of lithium hydroxide, reversing the traditional industry dynamic which has ensured the lowest cost producers are those in Chile and Argentina who turn briny water into lithium carbonate.

https://www.copyright link/business/mining/albemarle-expedites-australian-projects-over-chile-20181109-h17p4y

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"..In all honesty I know SFA.."

Hmmm, how's that old saying go again..?

Ohhh yes, that's right..! "Many a true word's often said in jest"

I'll give you a little hint RB, you should perhaps try a little more DYOR.

https://www.cnbc.com/2018/11/13/reuters-america-update-1-chilean-regulators-reject-albemarles-plans-to-boost-lithium-output.html

GXY Price at posting: $2.20 Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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