DVP Technical Analysis, page-560

Irothschild

Yeh nah - probably not. Cant see LTR needing/wanting to do that............ Unless Big Bill can convince Big Tony he will execute outstanding UG cost efficiencies & productivity, then he'll get paid like the rest - not with equity.

What you say is true on price escalations etc - but wait, theres more to the story.
Devils in the detail of LTR's update. Most journalists these days are tik tok teenagers with ADD and can't handle detailed information or are told to sensationalise a particular narrative - CR coming, panic, sky is falling.

Some of these cost escalations are LTR actually investing in expanding production volumes - 20% increase - thats huge. ie about $2.5bn in extra revenue over the first 5 years (2024-2028).

In addition they will also produce some non reserves DSO - a one off extra $500mm in 1H 24.
So thats a fare bit of new revenues for LTR to pay Oz contractors that are having a lend on price increases in the current environment.

...and the more that Ozzie contractors continue to believe its a "try your luck country" whacking up prices, the greater the chance a missed "manufacturing" opportunity occurs (again) and companies like LTR go offshore for their downstream profit bonanza intermediary Lithium Sulphate/Phosphate and/or Lithium Hydroxide processing.
Obviously this time its NOT China - But (Eastern) Europe or Mexico/USA.


Cheers
Happy DVP AND LTR shareholder.................