I agree. AKE should look for new ground in Australia, so it can...

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tiko

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18/04/23

01:03

Post #: 67322465
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Originally posted by triage: ↑

MD Martin does not make it easy for retail investors in my opinion. This release today is technically "heavy" with no clear attention hooks. In fact the announcement leads off with the seemingly underwhelming note that after a fair bit of huffing and puffing resources are only increased by an immaterial 4%. Hardly an increase at all it seems, time to move onto other more shiny things.

However, and correct me if I am wrong, actually that 4% increase is net of spodumene mined and sold for the six months to the end of December 2022. And within that 12.8 mt of spodumene they have converted much of the airy-fairy inferred resources to the now-you're-getting-serious indicated class of resources. Indicated resources are up by 130% to now make up 92% of all resources. In other words they have moved considerable resources towards becoming reserves, ready for mining. One question on that conversion though is that only 64% of the indicated resources are able to be mined relatively cheaply by open pit while the remaining 36% might be mineable but only by using underground methods.

Stage 3, which is the last stage of the current drilling campaign, has now been completed and it is intended to extend known resources, rather than prove up the class of existing resources. The first couple of results from stage 3 are in though to me they are not particularly impressive.

The next drilling campaign at Mt Cattlin is not due to kick off until late this year.

Sorry to harp on about it again but I would really like Allkem to start tieing up some more ground around Mt Cattlin so as to turn it into a regional processing centre. The big boppers are getting all gooey over ESS's Pioneer Dome and it is half the resource Mt Cattlin is and has no infrastructure in place (unlike Mt Cattlin). There are only six plants producing lithium in WA and Allkem needs to maximise its advantage in having one of those currently producing plants.

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I agree. AKE should look for new ground in Australia, so it can produce there for many more years.

AKE Price at posting: $11.60 Sentiment: Buy Disclosure: Held
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