"As Arkansas contends with booming lithium discoveries and investments by ExxonMobil (NYSE: XOM), Albemarle (NYSE: ALB) and Standard Lithium (TSXV: SLI) among others, the state faces a battle over the amount of royalty to pay landowners."
"The Arkansas Oil and Gas Commission on Nov. 4 is to hear an application filed by those companies and others to potentially set the royalty rate. They have proposed a 1.82% royalty, while landowners are seeking 12.5%, according to BMO Capital Markets mining analyst Greg Jones." -------------------------------------------------------------------------------------------------------------------------------------
If landowners get their wish the royalty paid on 1 tonne of LCE sold at $21,000 will be $2,625 for brine produced at the smackover. In comparison our PFS factored in the SK royalty rate of 3% which would be $630 royalty at the same sale price. Interesting to know what it ends up being but the higher it is the better Prairie looks in comparison.
And on to a Nevada vs Arizona royalty rate. Nevada has a 5% royalty on lithium whereas Arizona is 0%. At 21k per tonne sale price that's $1050 of royalty Thacker Pass has to pay that Big Sandy does not. 90% of clay lithium projects are in Nevada. Prettiest clay at the dance?
AZL Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
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