Don't forget China is highly depending on importing lithium materials to meet their demand, even wanting DSO. Also, Chinese new car sale market is the world largest one, currently selling 26.7m new cars per year, is expected to grow to 40m new car sales per year by 2030. Last month new energy vehicle penetration rate is 31%, Chinese government is still pushing new energy vehicle industry, in 20 year's time, all new car sales in China probably will be electric cars, that market alone would require 2 million tons lithium carbonate equivalent.
World class deposit, higher tons, is only beneficial to LLL, just have a look at Greenbushes, Chinese Tianqi co-developing, they are expanding to stage 3, producing 1.95 million tons spodumene concentrates. LLL and Ganfeng, are to produce first spodumene concentrate next May, then expand to stage 2 (831ktpa SC6) by December 2025. I won't be surprised if Ganfeng wants to expand to stage 3. Then resource size does matter and will generate more cashflow.
Even today's spodumene concentrate price dropped by another 50%, LLL's shared net profit after tax would be still around $400m-$600m per year, then LLL's market cap is merely $600m mark.
All imo.
LLL Price at posting:
58.5¢ Sentiment: Buy Disclosure: Held
(20min delay)