Mate, the AFR article was simply rubbish. They just released it...

Mate, the AFR article was simply rubbish. They just released it help shorters. I do not trust and believe majority AFR journos.

That chart is total BS. I will make a post soon about the whole Australian miners, their cost and process technical.

The main purpose of releasing this chart is to put LTS's KV project on the worst position for helping the shorters and the someone IMO.

That chart AFR put on the article is by CITI RESEARCH. We know very well who is City Research. Totally useless. It's even not worth it to talk about that chart but I will just give you very simple and quick response.

Please pay attention that the chart is made for 2025.

For example MIN (Mineral Resources) mines; Wodgina, Mt Marion and Bald Hill are shown on that chart. Their FOB cost are shown totally wrong than what MIN was released just last week. Here is what MIN said FOB costs of its mines as for 2025 guidance;

Mt Marion: US$870-$970/t
Wodgina: US$800-$890/t
Bald Hill: US$800-$890/t





And compare them with Citi's BS chart.

They put totally different and much lower FOB cost for MIN's those 3 mines. Just to make KV project looks worse.


Another one is Mt Cattlin of Arcadium.

This mine can't produce anything at all anymore. It was also a small mine with only 12mt long time ago, it's now finished. Because it was making production when the spod price was very high (over US$5000/t).

Now read this below. You will see that Mt Cattlin cost was over US$900 even last year in 2023. It should be even higher now if they produce anything. This is given as correct on Citi's chart. However the key point is it's not working anymore.



Citi's point is right in terms of costs but it shows the total cost cost wrong there. Just make KV looing worse again.

Btw, just make a note that all of those mines, all of them, want to go underground. You can see the note on Mt Cattlin says that as well.

Mt Marion is already doing it for very low grades, Wodgina might do that said Chris Ellison. Greenbushes wants to underground on its expansion project which is never going to be realised, PLS talks the same thing.

Anyway, just forget about this BS chart. It's the part of their dirty game.

PLS's AISC (all-in-sustained-cost) FOB is also much much higher than shown there.

Also PLS has very high royalty costs.
5% for gov.
5% for private royalty (for Altura tenements)
1% Native title.

LTR has no private royalty issue. We paid $50m and bought the right long time ago. Only Gov and native title royalties.

What the market should understand is this;

The Australian hard rock producers can't make money at lithium price any lower than US$1,000/t. Even it's not enough.

The incentive cost should be at least 30% above that which brings the price around to US$1,300/t.

Otherwise the supply deficit will grow significantly. So market will balance itself very soon.

LTR can make money even at this price because LTR mine is state of the art, has high grade ore, and it's underground. All stars are aligned for us even in this tough condition.

The bastards all know that. So they are trying to push it down to make offer. We just need to hold tight.