Share
1,922 Posts.
lightbulb Created with Sketch. 163
clock Created with Sketch.
19/11/22
22:25
Share
Originally posted by horizon3:
↑
I don' think so - why not waiting another year or two to get it cheaper? a) longterm more and more Li mines will come online and prices will go down significantly, b) long-term recycling will become the biggest Li mine. We should not forget, Li is not a rare metal! The high price right now is just an anomaly. Why would off-take partner commit to the highest price in the history of Li, while half of the mining world is currently exploring for and developing Li projects (plus the future major recycling supply in 10-15years or so)? So I do think the high Li prices right now might actually hurt us (re: finance and off-take). I feel, for example, this is one of the reasons why GLN recently decided to avoid a high capex and costly production facility, and just produce liquid spodumene concentrate instead (all of which they might be able to fund by themselves somehow). In addition, the high Li prices might force battery producers to develop other non/low-Li solutions... And as we see, even our own Mitsui is NOT jumping on it (like the 100 others would as you say)....tricky situation!
Expand
Remember, we need to keep in mind the price on our DFS, which is no near today's prices. Mitsui (or others) looks at our DFS, not at anything else. Our NPV is based on DFS numbers, not todays prices. Todays Li 99.5% Carbonate price is ""irrelevant"". The deal will be done on our NPV, not SP.