Just got back from attending the AGM, I've summarised the main points below
- 25 perth employees, over 400 in Mali
- less than US$10m spent on drilling program
- deposit open at depth, to the north and have had recent drill success to the West (assays yet to be received)
- Drilling results next week
-Resource update in June, Reserve update in Aug
- capital intensity - most in Aust north of $1500/t, Goulamina $563/t at the new capex - so low cost, globally competitive
- First overburden removed May 5, First blast in next few weeks
- Will shortly be testing Dakar in Senegal
- Ganfeng have continuously asked us to bring the project forward, both DSO & Spod
- Will discuss in China next week about stage 2, probably a duplication of stage 1 rather than an extra 300k
will also discuss options for downstream stage 2
Qs
- DSO, have done grade control drilling, awaiting assays, expecting grade of 1.6 to 1.65% - better than LOM grade
will come out with a better price estimate than the conservative 300-350/t
shipping quote $47/t Abidjan to China
- About to commence the process for the gov’t getting it’s 10%
- PPA still negotiating the contract, will originally be diesel gensets, but solar added once in production
re Greenness, just the proximity to Europe & East coast US makes a big difference on carbon footprint
4-5 days shipping to Western Europe, from Aust 6-7 weeks, so even if we are full diesel at Goulamina, we’d still have a lower carbon footprint than Aust producers
- Simon & Board off to Mali shortly
- Spodumene is not in pricing formula, based on Hydroxide & Carbonate from 2 agencies on a spot basis & a quarterly basis in arrears
it is set for every shipment
- Always have 1 senior person from Aust on site, Lycopodium have about 15 aussie expats in Country, I meet with the mines mininster ea Q
- I think FFX have a very solid plan for dealing with the holding, so lets see how it unfolds over the next few months
- Ball Mill is currently on a boat, about to land in W Africa, currently have some steel we need to get out of Indo & China
- Opex update not until a similar stage that capex was updated. eg 90% of contracts awarded,
- There is some doubt on 2nd 10% of Govt ownership, some recent legislation where the Govt has to prove it can pay for it
I had some good conversations with Simon, Tom (COO) and a few Directors.
The Directors can't speak highly enough as to Simon's handling of the project.
Tom gave some great insight as to construction & operational side of the project, the little things like covering the important non concreted areas with laterite which stands up very well to monsoonal rain. The assays are sent to Vancouver which has a very quick turnaround. You need specialist labs that handle lithium.
Speaking to Simon, I got the impression stage 2 going to 1m tonnes was a formality.
Also the government may not be in a hurry to buy it's 2nd 10%. That would involve them forfeiting duty/tax to pay for it, and that money is very much needed in the short term. However there is no time limit on when they can claim their 2nd 10%.
(20min delay)