FFX (ASX) General discussion

Talking of the Mining License transfer, it’s now all systems go - the project is underway.
It’s fully financed (technically $6m short - $3m each), and that’s based on a current DFS updated for current costs. All required licenses are in place and they have 100% offtake at market prices. Many other companies use the offtake agreements to get finance and so don’t get the best pricing. Companies like Tesla also demand a discount to have their name associated with the miner.
I think the beauty of our project is in it’s simplicity. No new technologies are being used, it’s a very straight forward project using tried & tested methods. Simon has also assembled a team with prior commissioning experience at a range of Spodumene mines. Simon is also the only CEO who has experience running a producing Lithium mine - that is very important.
We also have a very conservative build time of 2 years. CXO say 1 year for a much smaller plant, AVZ don’t show a timetable in recent presentations, but were quoting 18 months a year or so ago.
I won’t go into the economics other than to say a NPV of A$4.1b based on a very conservative average SP6 price of $978/t. Allkem are expecting pricing of about $5000/t for the June Q, the economics probably best summed up as a “cash cow” with the lowest operating costs.
The JV is 100% complete with the World’s largest Lithium converter.
And the only way to get a piece of this is to buy FFX now, or take your chances pricing wise when it lists.