I absolutely liked the Li results and the potential is significant however the caveat I put on my excitement is that even if they JORC a lithium deposit, and form an intention to mine it, you are looking at usually circa 2 years to build (not cheap) a processing plant etc to get the Li into a saleable product.
Refining Au from dirt/ rock is from my understanding a much quicker and simpler process and probably why BRB will keep a stronger focus on it because of the quicker potential returns and cheaper refinement process.
I think the Li is a bit of a conundrum for the company. They know its very valuable (right now) but what do they do with it? There are a number of other dedicated Li miners out there with a significant head start on BRB with a good chance of getting their Li to market whilst Li prices remain strong but it is likely playing on BRB's mind the potential risk of spending big on setting up for Li only for that market to possibly recede by the time they gear up and get into action. Investment on Au production is a lot less risky.
I reckon that BRB is wondering whether they simply sell off the Li arm to an entity that can solely focus on it? What that means the for company's SP is difficult to know at this stage because they have a lot more work to do to know what they actually have- or don't have. The answer to that will require a fair bit more expenditure. Having said that its a nice conundrum to have...Cheers
BRB Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
