Ann: NT Govt Land Commitment at Middle Arm for LFP Project, page-71

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the_contrarian

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14/06/23

10:54

Post #: 68276157
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Originally posted by cmonaussie: ↑

But thats the rub ... they still got to get the phosphate from Australia ... Do they???

Snipped from the scoping study

So right there ... TPA from China is a real possibility to start with ... BTW who would be a regional "tolling" option for Wonarah Phosphate??

If AEV is shipping in
1) TPA from China,
and
2) Met grade Fe powder from Belgium (possibly)

and

3) (hopefully) get some LiOH on its way from Perth to China to drop some off in Darwin

ALL OF THOSE could just as easily be shipped to places other than Darwin.

And to quote AEv's Brian Campbell from the Paydirt '23 presentation

"The reason is that it's logistics. 55% by mass of the feed material to an LFP plant is phosphoric acid. Lithium's only 19% and the iron powder is 26%. So, it's about logistics. Essentially the ships carrying hydroxide from Perth sail right past Darwin. We offload them, make LFP powder, put it back on again and send it to South Korea and Japan. That's basically it."

Well, if AEV are shipping in TPA from China that defeats the purpose of LFP in Darwin. Oh sure we could build a 10Ktpy single train doing just that and say we are actively looking to manufacture TPA using our own phosphate but in reality it's just a promise for the future.

I mean what's the difference then to say Pan Asia Metals who approaches the problem from a Lithium starting point (with Lepidolite - yuk).

This is a great slide BTW

Maybe above our pay grade and maybe not. As investors it ought to be important to discover what the true business advantage (moat) is or even if it exists.

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That's all way above my pay grade. I think the first focus is on the DSO.

You could ask the same question about the Li hydroxide plants in Perth. Why not just have a DSO operation for all major lithium players? Most of it probably goes to the US and China anyway.

Maybe there's more to it. Something like, if you want our resources, set up downstream processing. You scratch our back and we'll scratch yours.

I don't really know. Maybe someone with more insight can shed some light.

AEV Price at posting: 1.6¢ Sentiment: Buy Disclosure: Held
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