Long term critical materials supply contracts are highly desirable. Especially if they're designed to limit price volatility for a product you expect to be using for decades. The longer the contract, the better, for both sides. If I was Bosch, I'd actually want to see that such a contract was in fact sustainable, i.e., you have the goods in the ground, etc. etc. That's part of my rationale for hoping the drilling results will support a much longer LOM.
I've been wondering what happened to the two additional long term contracts that were going to be announced after the new year. Maybe someone wanted more than 15 years assurance?
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I highly doubt they can expand the LAMP. I suspect the whole plant is essentially sized to perfection for the four kilns. I would LOVE to hear otherwise. So I'm not really looking to increase feed.
That said, Mt Weld would seem to be able to support a second LAMP somewhere, perhaps next door, perhaps one that would start with two kilns and expand to four, given the fact that they can produce two years or more of LAMP feed in a single year or less mining campaign (IIUC). I'm not getting my hopes up, though.
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Bottom line: I hope the drilling results extend resources and reserves in a big way. And I'd like to hear about AP ore and get that going.
LYC Price at posting:
$2.60 Sentiment: Buy Disclosure: Held
(20min delay)