Two weeks ago, in a response to @EDTD (Post #:72314422) I suggested:
"There is one further key point for me, around which everything else revolves, that I'll share tomorrow, in the daylight hours."
Having not gotten around to it, I will here.
Caesium
The reason I posted all those pages a fortnight ago from the US Geological Survey's "Mineral Commodity Summaries" was to suggest to other holders how important I believe our caesium byproduct is. Everything that follows is my opinion only and I encourage you to follow Learning_2B1's advice: Trust, but verify.
Yes, Lepidico's got terrific tech, which produces high purity, low emission, lower cost lithium hydroxide and lithium carbonate from overlooked sources. As interest has been high for P1's LiOH, Traxys will most likely find eager purchasers as well for P2's LCE products. Caesium is our differentiator. After the US published its Critical Minerals list, JW made the point of mentioning in interviews that caesium and rubidium are "strategic" as well. Management also continually remind us in our QRs. Randomly, I skimmed 30 September 2022's, which included this paragraph, which everyone will be well-familiar with:
Phase 1 represents a unique opportunity globally for production of the strategic metals: caesium and rubidium, for which the United States is 100% reliant on imports. Furthermore, lithium, caesium, and rubidium, the main Phase 1 products, are all on the U.S. Government list of Critical Minerals, making Lepidico’s technologies and the Phase 1 chemical plant strategically significant.
If you go back over the past few years, variations of this statement come up repeatedly, not only in our quarterlies, but the in multiple dedicated ASX announcements between 2018 and 2021. Even PLP's initial announcement (1 February 2016) on their 1 month exclusive due diligence agreement with Lepidico states in the 4th bullet point on page 1:
Lepidico is also the 100% owner and licensor of the L-Max technology, a proprietary metallurgical process that has the potential to commercially extract lithium and other by-products from unconventional sources at a competitive cost.
The US needs caesium, rubidium and their various compounds for their military, technological, medical and research purposes listed year after year by the USGS. They have made clear they are determined to not rely on China for 100% of supply. China upped the ante last year by restricting exports of REE, flagging their determination to maintain control of minerals processing.
(Btw, I have preferred to post information I come upon, letting readers draw their own conclusions, than spell out my opinion, because if LPD's future doesn't pan out as I foresee it, I would feel awful if others suffered financial losses because of something I may have said. Therefore, please everyone, DYOR.)
Phase 2 locations
The US:
Because of the above, I feel certain that a Phase 2 plant will be built in the US and if Lepidico commits to multiple plants geographically, a US plant will most likely be the first one commenced, in my opinion for entirely political reasons. Justifying my position:
• our long, drawn out journey with the DFC
• management taking the time to whittle 66 submissions down to 2
• retaining our Toronto office over all these years, in spite of not pursuing a Canadian deposit
• green hydrogen + renewable energy initiatives
• sulphur supply from Canada
• additional sources of feedstock, as mentioned in our last QR on p.4 ("reduced logistics costs for domestic or regionally source concentrate")
Our latest quarterly also informs that "additional sources of concentrate from third-party lithium mica mines continue to be evaluated," as "Broad interest continues to be shown in large-scale lithium mica processing hubs in Europe, Namibia,the UAE, the UK and the US."
Namibia:
If management have located a "25-hectare chemical plant site identified near Walvis Bay," Namibia is a serious viability.
• obviously logical with our resource and concentrator there
• nearby are potentially additional lithium-bearing micas
• low labour costs
• friendly relations with both the US and UK
• green hydrogen + renewable energy initiatives
• a Canadian owned copper smelter is nearby (Sulphuric acid is a by-product.)
The UK:
I've wondered if we could be in collusion with Cornish Lithium given:
• our one-off royalty concession when we signed our Strategic Collaboration agreement on 7 December 2020
• the DFC is a major backer of "CornishLithium's largest existing institutional shareholder, TechMet, the critical minerals investment company," investing US$7 million. (LPD ASX announcement 14 August 2023)
• "EMG, a US-based private equity fund focused on the energy and minerals sectors will also invest around...US$30 million." (LPD ASX announcement 14 August 2023)
• the same political reasons I've surmised the US is interested in Lepidico.
The UAE:
The UAE is clearly feasible, being the location of our Phase 1 plant, plus for all the reasons we already know:
• tax free status
• ready sulphur supply for our own acid plant
• green hydrogen + renewable energy initiatives
• globally central location: our products can efficiently be shipped to gigafactories and CAM producers in Europe or the greater Asia region, i.e., to politically friendly countries such as Japan or Korea.
Europe:
This will have to keep till tomorrow, as I have to dash now.
Btw, yesterday and today I have deliberately used the emotive verbs "feel" and "believe" to emphasis that my personal thoughts and conclusions are entirely subjective. Obviously, it is the responsibility of every shareholder to arrive at their own opinions before parting with their hard-earned. Am very happy to receive feedback on others' thoughts. Cheers all.
(20min delay)
