how about the area proposed for production has just been removed...

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24/04/24

17:31

Post #: 73502862
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Originally posted by fnqricko: ↑

This is why finance could be a problem, A number of times in the past they indicated the company was in talks with potential off take partners for Caesium. Nothing ever happened. It became evident that theCaesium and Rubidium market is very opaque and eventually there was no more comment about offtake for these two products. Possibly because potential buyers wouldn't lock into binding agreements for a particular price regime

However we need to remember the sale of Caesium and Rubidium is critical to the viability of the whole LMax and LOHMax process, without sale of these products based on the expected price estimated by LPD, lithium is not really produced very cheaply by the Lepidico process.

We are now raising funds to reinstigate due diligence for potential lenders. Obviously we have already paid for due diligence for previous potential lenders to no avail. Due diligence investigates every aspect of the company, and certain knowledge may uncover red flags.

It is not a long bow to believe the lack of offtake for the two main byproducts being secured was a red flag in the mind of a potential lender . Asked to invest 100's of millions of dollars but without the certainty of offtake partners, would I think trigger that mindset. Also the market is not big for Caesium we don't know what affect the increased supply from a phase 2 plant might have on price suppression in the future. We could become a means to our own end by ultimately over producing this critical element.

Also sulphuric acid could have raised a red flag considering we need about 1tonne of 93% sulphuric acid for every tonne of 4.5%Li20 concentrate. By the time we get to phase 2 and 20 thousand+ tonne production of LIOH the amount of sulphuric acid required would be gigantic and possibly is not a viable proposition in the mind of a lender particularly when you add it to the problem created by the caesium offtake. This may not happen at P1 level but an investor would want to know that there was future beyond P1 and not prepared to invest base on the uncertainty evident from the above described circumstances coupled with the fact it is a new process and not attempted at commercial scale before.

What is going to make it different for potentially new lenders attempting due dillgence with more millions of dollars of shareholders money being spent again on the same roundabout?.

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how about the area proposed for production has just been removed from the GREY LIST for the USA , think that might be more important than two by products, hopefully Iran will quieten down and the USA is willing to spread its financial muscle or Europe. Finance isnt an easy matter in the current climate and we have had more than a few disruption in the past 4 years

LPD Price at posting: 0.3¢ Sentiment: Buy Disclosure: Held
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