1. The replacement cost of of plant and equipment in the high inflationary environment has risen significantly. 2. The time to build the concentrator is long with difficulties in ramp up. MC is well oil (pardon the pun) machine now days. 3. Mine life is irrelevant as we can easily take over or source lithium bearing material from surrounding tenement/companies such as Nickle search. 4. The company has opening expressed a desire to toll material form other companies with available spare capacity from the concentrator. 5. They want to be a global operation and I think that Australia is a non negotiable derestriction with that vision
The only thing that may throw a spanner in the works, is if DLE has been proven during the current quarter at Olaroz. Hard rock may well take a back seat for some time if DLE improves recovery rates, lower opex and reduces impurities. Brines would be highly sought after, making the merger of SDV and Fenix + Olaroz + cauchari simply mouth watering.
Not advice
AKE Price at posting:
$10.57 Sentiment: Buy Disclosure: Held
