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01/01/17
21:09
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Originally posted by Freehold
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There will be explosive growth in lithium demand well beyond what most commentators and punters expect... for example China had over 100% growth in lithium vehicles in the last 12 months alone (and they plan to accelerate the growth) I read somewhere whereas most commentators were predicting around 10% growth. Companies are judged/valued on future earning potential as well as the asset size and quality they control, location/country, available infrastructure etc etc.
From the outset for example I expect that KDR operations (1.5mt / Annum) will outsize BGS (prob 500kt-1mt /annum) and continue to grow with a additional 2 -4 mt option coming on stream within 2 years and prob doubling again within another 2 . BGS current asset could not justify an expansion on this scale (ie 5.5mt processed per yr in 2yrs ). You need to factor in the current trend to build upstream processing plants at the site or near large "multi-generational" sized assets such as KDR's to reduce costs ....such as those announced at Kwinana to service the Greenbushes mine and the one in Kalgoorlie for NMT I think?.
You need to factor in the sheer blue sky potential... KDR with 128mt @ 1.44% Li20 and a target of another 100mt @ 1.3-1.5% is truely world class ... And mgmt. state even with this v.large potential combined resource they will only be "scratching the surface" and with 2000 old holes historic drill holes intersecting pegmatite on KDR ground then I doubt not doubt them.
You need to think of all the options open to mgmt. to monetise an asset for shareholders these can vary from small scale development, to medium and large scale or also the sale of the asset outright... In my opinion KDR is fast accelerating towards a tipping point in terms of scale and quality of asset where the worlds mining majors (the likes of BHP Vale Etc ) will start to run the ruler over its asset to see if it fits their long term strategy. Rio has already acquired the large high grade Jadar lithium/boron deposit in Serbia as an example.
Ultimately I think KDR is sitting and a sleeping giant lithium resource (prob amongst the top 3 ) with numerous gold credits... Start thinking and researching Olympic Dam size deposit and what happened to that ....
All is IMHO Only DYOR.
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Thanks for your sharing on KDR and STT knowledge 2.0. Writing a plan for 2017. You could write a best seller from the material. Copied onto word and got 280 pages which I am editing into a process that will improve my trading.
Only 1 of 9 expected KDR Ann's from your post a month or so back has appeared to date (fantastic JORC), so much too look forward to.
Own plenty of KDRO and keep buying whilst 6c discount to heads however run out of money.
Is there a reason for this?
DYOR is a challenge when you don't really know what you don't really know but I will persevere and hope to be a positive contributor this year.
Happy new year to all and GLTAH.
A smile and a cold beer will solve most problems. Gordon.