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20:43
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Originally posted by WhatsTheTip
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The inherent problem is that while DSO returns per ton of mined ore are less than Spod, they can be brought on-stream much faster. For a period of time across 2024, 2025 and possibly some of 2023, the choice may be strong DSO revenues or nothing. If DSO revenues are potentially $500+/t they are massively higher than other commodities like coal and iron ore that are DSO shipped from Australia. The gross margins would be one's that many other miners would love to have as their main business. I think, but Core's auction will help confirm this that current DSO ore pricing is higher on a lithia adjusted basis than many miners are using in their Spod based business cases (its just less than the super-high current spod prices)
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As a LTH here IMO shareholders will be better off if ESS is taken out near term in a cash and share deal by a well funded competent operator already in the game.
