Green passport and associated EU incentives of it may favour...

First 27 Last

Share
Profile

Follow
sura7667

2,619 Posts.

672

17/11/23

12:17

Post #: 70961132
Share

Originally posted by cmonaussie: ↑

FW used the term "safe harbor" when discussing the Bridging Study on "The Watchlist" (on bottom right of screen for most of us) wrt to low OPEX

"We've also kept our very low cost of operation. In a volatile world with Lithium prices going up and down, its a very safe harbor - the Vulcan Zero Carbon Lithium project - because we have such a low cost of production and therefore we have high margins."

Make no mistake, while producing LHM is a chemical process and not the mining of an ore, our product is still a "commodity" (in a small but rapidly growing market for Lithium). And in the world of commodities - they are priced at the margins. I'm using the term "commodity" strictly in the economic sense - full substitution (market treats all LHM as equivalent regardless of who/where it was produced). This is the world of low cost producer is last man standing ... and its never good to have China as your competitor on price.

As a consumer I/we don't really care (but perhaps I/we should care (more)) where the minerals come from ... I paid attention to where the car came from (Japan and not China), so I'm not exactly driven only by price (there is no price (even free) for me to accept a BYD for example).

In VUL's world, FW is trying very hard to inject "differentiation" between the sources of LHM supply to his advantage and one hopes perhaps even extract a premium price. Is for Stellantis willing to pay more for "Zero Carbon Lithium" in the cathode of the battery. What about the anode ... without sourcing "green graphite" seems a bit of a mute point. And more to the point would a consumer of a Stellantis EV pay more for the exact same EV from Stellantis if it came with a ZC (or close to it) battery? That makes our LHM no longer a commodity and we have pricing power (as well as low cost of production).

Got till the end of the decade I suspect.

Expand

Green passport and associated EU incentives of it may favour vulcan immensely..
We may not get a premium but surely get a priority...

Last edited by sura7667: 17/11/23

VUL Price at posting: $2.58 Sentiment: Buy Disclosure: Held
15 Upvote

1 Great analysis

Reply

Top Stories

NEU

Neuren sees FDA greenlight for 3rd trial into children with Phelan-McDermid syndrome

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

NYR

Nyrada rat study shows no genotoxicity in brain injury drug NYR-BI03

CHM

Leukaemia patient shows complete response in Chimeric Therapeutics' latest trial

Arika to pump $3.2M into gold exploration at WA's Yundamindra following strong maiden program

There are more pages in this discussion • 10 more messages in this thread...

First 27 Last

Add VUL (ASX) to my watchlist

(20min delay)
Last $4.56		Change 0.360(8.57%)		Mkt cap ! $856.2M

Open	High	Low	Value	Volume
$4.35	$4.61	$4.35	$3.337M	738.6K

Buyers (Bids)

No.	Vol.	Price($)
5	1378	$4.55

Sellers (Offers)

Price($)	Vol.	No.
$4.56	551	6

View Market Depth

No.	Vol.	Price($)
5	1378	4.550
6	4249	4.540
5	2124	4.530
7	6518	4.520
6	3004	4.510

Price($)	Vol.	No.
4.560	550	5
4.570	5895	5
4.580	8050	3
4.590	19929	6
4.600	11476	5

Last trade - 15.39pm 07/10/2024 (20 minute delay)

VUL (ASX) Chart

Green passport and associated EU incentives of it may favour...

Neuren sees FDA greenlight for 3rd trial into children with Phelan-McDermid syndrome

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Nyrada rat study shows no genotoxicity in brain injury drug NYR-BI03

Leukaemia patient shows complete response in Chimeric Therapeutics' latest trial

Arika to pump $3.2M into gold exploration at WA's Yundamindra following strong maiden program

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Green passport and associated EU incentives of it may favour...

Top Stories

Neuren sees FDA greenlight for 3rd trial into children with Phelan-McDermid syndrome

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Nyrada rat study shows no genotoxicity in brain injury drug NYR-BI03

Leukaemia patient shows complete response in Chimeric Therapeutics' latest trial

Arika to pump $3.2M into gold exploration at WA's Yundamindra following strong maiden program

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News