LIT 2.33% 2.1¢ lithium australia limited

The CPC Report showed only the first line of the tale below. I...

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    The CPC Report showed only the first line of the tale below. I thought I would add the values for the range of contract prices and spot prices as well. NOTE: I don’t know the criteria for obtaining spot prices.
    I then tried to get an idea of the equivalent table when the source material is spodumene not mica since a lot more material has to be refined in the mica case.
    LSPP for Micas.
    Costs from the CPC report and sales prices from the Ref below.
    Material costs $3960/t Li2CO3
    Hydro plant operation costs $5600 to $6400/t
    So LSPP operating costs are $9560 to $10360/t
    Column 1 Column 2 Column 3 Column 4 Column 5
    0 Prodn cost/t
    selling cost/t
    contract pr
    selling cost/t
    spot price
    profit/t
    profit on 2500 t
    1          
    2 9560
    10000
      440
    1,100,000
    3 9560
    16000

    4440
    11,100,000
    4 9560

    18000
    8440
    21,100,000
    5 9560

    21000
    11440
    26,600,000
    6 10360
    10000

    -360
    -900,000
    7 10360
    16000

    3640
    9,100,000
    8 10360

    18000
    7640
    19,100,000
    9 10360

    21000
    10640
    26,600,000

    Note: Sale of byproducts would increase profits significantly.


    How could this translate to production of Li2CO3 from Spodumene using SiLeach?
    Assume that ANSTO’s solution for removing the precipitated gypsum (calcium sulphate dihydrate) will work and will not introduce significant extra Hydro processing cost.
    i.e., Hydro plant operating cost is 5600 to 6400 per tonne.
    To get some idea of the profits prior to inclusion of transport costs of the source material, suppose the source material is 6% spodumene concentrate, which can be bought for $905/t (current GXY sale price.) So you can make calcium carbonate from spodumene using SiLeach for US$6505 to US$7305/t including material cost but not including transport to the Hydro factory.
    Note the difference in the cost of source materials, $905 for spodumene and $3960 from mica (4.37 times as much.)
    For ease of reference I have added the spodumene table below- note: no transport costs included here.

    Column 1 Column 2 Column 3 Column 4 Column 5
    0 Prodn cost/t
    selling cost/t contr pr
    selling cost/t spot pr
    profit/t
    profit on 2500t
    1 6505
    10000

    3495
    8,737,500
    2 6505
    16000

    9495
    23,757,500
    3 6505

    18000
    11495
    28,737,500
    4 6505

    21000
    14495
    36,237,500
    5 7305
    10000

    2695
    6,737,500
    6 7305
    16000

    8695
    21,737,500
    7 7305

    18000
    10695
    26,737,000
    8 7305

    21000
    13695
    34,237,500

    I see lots of potential upside here and look forward to LIT clarifying the SiLeach spodumene processing costs.

    I also recall that the PCT announcement on the international patent is due to be released mid August.
 
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