Ann: LOI with BASF extended to 31 December 2020, page-274

Just doing some analysis of my own into BASF while taking a break from the doom and gloom Covid-19 commentary and the monotonous false statements by a few on some of these threads.


BASF is a huge company with interests in many industries, sales by segment in Asia Pacific alone is charted below.



What I found very interesting is having a read of their financial targets and non financial targets.
keeping in mind, LPD has a letter of intent with BASF for the purchase of Lithium Hydroxide from the Karibib project.
BASF are also into Agricutural products, LPD will be producing SOP fertiliser
BASF are also into lubricants, LPD will be producing Caesium formate
BASF are heavily into chemicals and chemistry. LPD will be producing Rubidium Sulphate in commercial quantities greater than has ever been done before hence new innovations are now potentially possible for Rubidium.

BASF world wide had revenue of 59 billion EUR in 2019 with EBITDA of 8 billion EUR in 2019

One of their financial forecasts below is to have "return of capital employed (ROCE) considerably above the cost of capital percentage every year".
I think a return on investment of about 30-50% would satisfy the above criteria.

Here is an idea for BASF. With a one off capital investment of about US$90m dollars in LPD for the phase 1 plant, (that is just over 1% of their EBITDA for one year), LPD within 2 years should be ramping up to produce in excess of US$100m worth of products per annum with EBITDA of about US$50m per annum ( IMO and dyor). That translates to a return on investment of considerable above capital cost. IMO
(We are all waiting for the DFS for clarity on these figures).

BASF has also got a stated target of being CO2 growth neutral by 2030 hence the recent release regarding CO2 emissions from the LPD technologies. The ducks are all being lined up IMO

LPD can be seen as positive contributor to all of BASF's financial and non financial targets below in a small way, for such a huge company like BASF.








The BASF website is a great read for those wanting to learn more of the huge company with interests in a wide range of industries in virtually every country in the world.
https://www.basf.com/au/en.html



gltah

and good health to all