as an investor across the lithium space I totally agree , triage’s post was good and very much on point but it misses the Dso angle with hard rock . Orindarily dso is stupid as you’re in fact paying a an awful lot to ship waste rock around the world ( well mainly to China ) but this is not ordinary times , we are in a lithium bull cycle that will go some years despite what the clowns at goldmans are saying .
For the very reasons triage outlined in his post is the reason that there is a window of possibly 3-5 years where dso will work as the rest of the industry through traditional methods is slow to scale . It’s not a long term strategy as the economics of doing it at a much lower price point ( probably an lce equivalent price sun 30000 usd) won’t stack up but it’s a viable short to medium (3-5 year) term strategy .
On top of that you have operators like Pilbara minerals exploring ways to produce an even higher concentrated product than sc6 with their calix investment/ jv as they realise even shipping a 6% concentrate is inherently stupid long term . So you need a plan beyond dso but that doesn’t mean it’s not an opportunity in the here and now .
The smarter operators will find way to monetize a dso resource then use the cash to explore/ develop their resource and look to then pursue whether their resource is of sufficient scale to handle a concentration facility . Operators who can find a quick way to market with dso can earn valuable cash that prevents dilution to fund their other initiatives like nickel here with widgie. .
WIN Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
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