I think I will add on the last sentence:
"Altura really does produce a very high grade product and people traditionally pay more for a premium."
AJM currently produces over half its product from the coarse circuit. In the coarse circuit you cannot in effect remove deleterious elements and/or the spodumene within the appropriate specifications if the deleterious elements are in the lattice of the spodumene. The fact they can produce coarse product suggests the product is good, and the quality of the spodumene is coarse and amenable to the DMS circuit. If people want to understand these comments refer to Post #: 45659919 - whilst I posted the comments in another stock it has direct relevance to this statement :
The only evidence that would suggest the product AJM produces in the coarse circuit that will show it is not good is if it is used in industrial uses, which there is no evidence to that affect, meaning it is used in batteries. Therefore the product is good. As Iposted yesterday, I suspect tbreak the veertcal intergration nature of Chinese producers, who IMO manipulate price as they also do in vanadium, need a greater part of teh value chain - i.e. chemical converters plus EV production - to be done outside China, especially the chemical conversion process to lithium hydroxide monohydrate. That will be the greatest benefit to Australian producers IMO, and the current stimulus packges in Europe IMO will lead to that outcome, and that willl ultimately helps the industry overall.
In terms of this environmental argument I gave my views here - half way down this embedded post Post #: 45286612
Key issue for AJM is essentially the debt, as we all know, and that means a need for rising spodumene prices on the back of increasing EV demand is needed, given I suspect the floor has not held up (meaning the Chinese are not honouring contracts).
As long as cost of production - EBITDA in essence - is below sales price (as capex is sunk) spodumene will be produced, so the fact AJM is producing, whilst others are not, suggests AJM is cash flow positive. The issue for AJM is ensuring enough cash flow to pay the interest bill below the EBITDA line. This is the risk here - will the market turn soon enough to reward SHs here. AJM will remain in production IMO, so it has always been a question of whether SHs here are part of that story, and I hope we are, but the fact I have had a small punt here shows what I think (AJM will survive in its own right but that is IMO IMO IMO).
All IMO
