if we view this as a hedge, for an observer position for another 6 months on the lithium price. Consider 8.5m, while considerable, is still peanuts next to the 700m it stands to save us if we action Renard.
What i dont understand, is that we are betting on the 2028 supply gap, not the lithium price today. So where in our calculations, were we ever betting on the near term price movement to action our decision to Renard. ?
Its still only 52m, for a 1B plant. (requiring 260m capital on Adina, Road, Renard) Yet now with all the additional hedging expenses, to cost more.
They are going to have to explain what their decision to delay is based on, if it was never the current lithium price, but the forecast 2028. Our timing to market, required an act of faith in setting things in motion.
Was a strategic to pay for the lions share ? (CE suggested ideally project level towards NPV) wanting to see a higher price point entry ? At the end of the day, all the assets remain in play, we are just 8.5m for the worse of it. Consider still how others will pay for their 1b in plants. ? Then while in waiting, our potential remains as it ever was. Simply perplexed, to the need to defer another 6m, what is a supply gap in 2028.
WR1 Price at posting:
42.5¢ Sentiment: Buy Disclosure: Held
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