Ann: Pilot Plant continuous operation starts, page-42

Hey gang,

I had a bit on when this announcement came out and didn't get a chance to share my thoughts, just coming back to it now quickly.

I was a bit confused when I read it, as the LOH-Max circuit won't be ready to run for a few months yet, so it seemed odd to be stockpiling now. I also read it as "the carbonate won't be produced until hydroxide has been", which is completely incorrect.

I've clarified with the company, and that stockpiled material is intended so that they can demonstrate that both feed sources (Alvarroes and Namibia) can produce both lithium carbonate and lithium hydroxide through L-Max/LOH-Max. This is because the qualification process for certifying material is complex and goes beyond simply certifying spec. They want to know all about the process, the plant materials and the equipment involved. (https://mobile.twitter.com/VivasVK7/status/1145647736479526912)

Feed source is obviously a key consideration in determining the final output, so both potential feed sources need to demonstrate production of both lithium chemicals.

That being said, the 10-day run is due to end late in the coming week. I don't know how long it takes the plant to produce 4,000L of lithium sulphate liquor, but we can expect that some time in the next few days the switch will be made to producing lithium carbonate. I have no idea when the grades will be confirmed, but fingers crossed for some news this week.

Cheers