Mt Marion cost is around US$800/t, excluding selling cost and royalties, PLS is around US$800/t CIF. I think long term spodumene concentrate price is likely to stay well above US$1,500/t, my guess is US$2,000/t to US$3,000/t.
LLL's share for the stage 1 is 202.4Ktpa - 227.7Ktpa SC6, will be 332.4Ktpa - 374Ktpa SC6 including stage 2. I believe Goulamina should be further expanded thanks to the large deposit size. For a 332Ktpa spodumene concentrate producer, at AISC cost of US$500/t, income tax rate of 25% concession for first 15 years, net profit after tax per year is massive.
It's fully funded, Ganfeng provided US$130m cash + debt US$40m + Ganfeng further US$43m + LLL further US$43m, stage 1 production is ready in about 15 months; stage 2 capex of US$70m is to be funded from the stage 1 free cashflow.
Market cap is $635m.
All imo.
LLL Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
(20min delay)