Hi
@WhatsTheTipI obviously was not doing an indepth analysis but simply showing the order of magnitude difference in a potential value to an acquirer. However, since you ask, and I am not a geo or technician, I observe that the process flow sheet of LTR has a Whole Ore Flotation and yes, there are some operating mines that are using DMS followed by Floatation which no doubt increases refining costs. Indeed in China they are even producing refined lithium commencing with lepidolite ores that require significantly higher costs.
The fact remains that in the current pricing environment, which is increasingly looking likely to be sustained into the medium term out to 2030+, costs of refining represent a fraction of the value of the concentrate, let alone the lithium carbonate. LTR is now planning to sell DSO for around $1bn in the next year and a half which product was designated as waste!
I am simply stating that the company is in my opinion is worth multiples of its current price based upon the outlook for prices. I'm sure there are those "analysts" who say that prices of concentrate etc will retreat back to levels around 25% of current, but they are increasingly in the minority.
regards
DF
