An interesting report showcasing that the path forward remains solid. Some takes:
- initially, while happy with the spod price of US$779, I was surprised it wasn't a little higher. That is until I saw that this included 30,846 dmt of product corresponding to sales contracts from the June quarter. That would have heavily brought down the average. I assume recent sales would have been around $1000, and I am happy with the forecasts for the upcoming quarter.
- also, good to see some increased prices coming out of Argentina, and once again momentum for the upcoming quarter is good. Really looking forward to seeing increased volumes.
- JB seems to be on track, and upcoming stated news releases should be positive.
- For SDV, they pretty much confirmed what we have seen in the satellite images that pond construction is a little behind schedule. It is stated that this has been caused by covid related delays to permits. We just need to be aware that these delays will impact first evaporation, due to seasonal evaporation rates. While this is a little disappointing, it will continue to reduce supply in 2022 making everything else that we sell more valuable. From the satellite images we can see that they have not been twiddling their thumbs and been active on the ground, so can't complain too much. Again, just like JB an update resource upgrade this quarter should be highly valuable
- Happy to see borax prices up and Naraha coming together.
While the report could have been better, everything is really coming together for a solid 2022. Whatever the price does short term, think about the progress, upcoming updates, and what the completions will mean in terms of increased cashflow. For the long term investor, nothing to worry about, lots to look forward to.
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