Ann: Lithium carbonate and spodumene concentrate pricing update, page-92

I don’t think it is possible to spend the cash quick enough to use it all up developing the resources if prices stay this high. The only way to spend it would be to Aquire more assets which is not a great idea at the top of the market (top for now I suppose). Even a token dividend will show that we have fully transformed into the next stage of the business. Another converter or two would be a good way the spend the cash. One in North America and another in Oz somewhere between Mt Cattlin and the port. The way things are going if they played their cards right they could be given cheap government loans like RNU and EGR just got.

Will AKE ever go further down the battery path. I’d like to see the industry develop further in OZ. Maybe when we are rolling in cash do a JV with the likes of POSCO, they have the tech already. From left field maybe Twiggy or Cannon brooks might want to get involved. I don’t think the auto industry has to be dead in the water in Oz. We have all the resources and know how but it would have to be full vertically integrated for a chance to be profitable.

I did a tour of Bluescope steel at Port Kembla the other day. Great experience. They only had one blast furnace running and many of the huge sheds closed down, since they don’t make car panels and parts anymore. They are making good cash as the only produce plate and sheets closed all the marginal or non profit sections down.

If it was done right it could happen, would take lots of our biggest companies to come together to do it, government loans, tax incentives. Get my little mate Kevvy onto it. Fixed the GFC and Corona virus, there is nothing the guy can’t do. Maybe after he fixes the China problem.