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26/11/16
00:30
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Originally posted by Scarpa
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I will stick to the posts I provided last night, but will simply say this by building on these posts here. I had a read of the RMX thread and ye won't say anything else there. This will be my only post on this debate bwteen both sets of shareholders.
Assuming RMX and GPP have a commercial prospect (and that RMX does not develop more better technology to strip the iron and impurities from the brine in a timely fashion and I doubt it be able to do it in the now - been the next year) then GPP would be operating in the higher end lithium market IMO meeting the supply opportunities there, whilst RMX might be able to operate in the lower end lithium market (obviously if it builds the right technology might also be able to enter the higher end market but that will take time). Both will make profits (assuming production costs for brine and hardrock remain in place) and both have the resources to enter production which is still something to be established for both, but GPP will probably make more profit given the higher value add products its lithium concentrate can be used for. As I said in an earlier post oils aint oils - lithium concentrate (which is what I presume will be exported by GPP and RMX) will be converted into the generic term used for different grades of processed lithium (lithium cartbonate) and then the end use is based on the level of iron and impurities in that carbonate product and GPP is better placed because it is hardrock and hardrock generally has less iron and impurities than brine.
Anyway, all purely speculatative and at the end of the day both companies need to ensure they can develop their projects to enter the market in the now to have the best chance of long term survival (once the demand/supply gap narrows after the current wave of projects are devloped and come to market (some will miss the boat IMO), then it is incremental developments from there unless get another qunatum leap in demand as right now in future requiring more and more future greenfields developments to meet that demand gap. And hereinn lies the problem for RMX - GPP is better placed to enter the market in the now because it is hardrock and RMX is brine.
Right now suspect GPP is in front because it will be able to get into lithium production quicker than RMX (given GPP is hardrock and RMX is brine and for brine it takes years to get your first lithium concentrate product due to the evaporation techniques used for brine. Anyway, at the end of day all arbitary as both companies need to prove up their resource, and both are yet to drill by the way, but I am more comfortable holding GPP than RMX. Also given acreage I suspect GPP is in better shape to identify a commercial deposit than RMX IMO as well.
I prefer just to stick with GPP and will coment no further. Will occasionally visit the RMX board but won't post there, but ye an interesting bunch of shareholders to say the least (some understand these issues and have hope technoloogy will be on RMX's side so time will tell there).
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I reckon the price will plummet again,
If, and only if, (IFF), they don't release the surface test results before, or on/at AGM.
No results after the AGM, look out