Has been discussed, the gap has further to go imo. Earnings multiples - near-medium term favour hard rock assets with scalable, low capital intensity projects with rapid brownfield expansion options. Aus based asset base helps too.
The company in not wedded to legacy contracts and has uncontracted capacity to offload and get the full benefit of the current market deficit, particularly spodumene.
That aside, spodumene is favoured for large scale, consistent hydroxide production and is arguably a lower cost route vis a vis carbonate conversion (arguable but that seems to be market consensus). All things you are well across.
Wait for the September quarterly and compare the two. Pls will have +2x cash generation, I.e. what valuations are more sensitive to.
Aimo
AKE Price at posting:
$14.49 Sentiment: None Disclosure: Held
