That is correct. If spodumene prices don't improve then MLL/AVZ/LTR won't get to market - pretty simple. Viability is derived from supply/demand and the forecasts are based essentially on the journey to 2000 GWh or 3000 GWh been correct by 2030. If demand doesn't grow prices don't move, but my personal perspective is that US$600 per tonne - US$700 per tonne are reasonable prices to put into a DFS (manng those longterm GWh projections are in play and a number of greenfields projects will be required). It is all about demand now.
But to reiterate, yourselves moving to gold production in the interim is a good move, very good to be frank and hope the drill bit works for you there on your own tenements to take advantage of that gifted capex from Barrick/etc
This is LTR's process flowsheet for WOF - so you might want to compare capex estimates between the two albeit I would say LTR's is probably a little simplified compared to yourselves as might be grouping steps themselves:
Point of doing MET tests is to ensure you don't end up in PLS situation where they had to retrofit capex because the process flowsheet didn't work, and there they are still working towards their initial September 2016 DFS target of 77%. PLS resource is lower grade than here, but the point was they didn't test enough when they put in place the process flowsheet.
My personal view is you will see more MET testing by MLL in due course so that they get comfortable that the MLL process flowsheet works. They will make it work is my point, and have time on their side to do more testing given their scheduled production date if things work out for the market as a whole.
Anyway, posted my posts for balance, not sure why the angst to be frank between both sets of posters.
On the issue of gold I gave a view in this post and several following this one on the same day, been it looks to me as a good deal given where MLLs tenements are in relation to the facility as well -
Post #: 47678841
All IMO
