ah well thanks for repeating your thesis.it seems that Lithium...

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contraindicator

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28/04/22

15:49

Post #: 61075886
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Originally posted by 2ic: ↑

Posted a lot of thoughts and analysis on SVM over last year it you wanted to review. Graphite was the game changer that solved the 'footprint' problems of a skinny deposit needing large tonnage, for a rutile only project (rutile grade drops off quickly from the soil-laterite top). Graphite adds 40% of revenue to sensible depth pits and 50% if they go deeper still. Obviously graphite bi-product credit extracted cheaply form the same ore feed hugely adds to the operating margin and NPV.

Take away the graphite and despite being a very large regional stratigraphic play I think it would struggle as rutile only, despite rutile being in long term supply deficit and price forecast. So all the good work really hangs on the graphite market and graphite price. History hasn't been kind to the graphite market (eg SYR) and the future of graphite is not necessarily rosy. Graphite price is either heading to heaven or direct to hell depending on battery anode technology imo, given battery demand is the sole driver of new graphite mines popping up all over the globe. I don;t like the risk of new silicon, carbon, nano-tech and/or metal anodes coming in and dominating battery anodes before end of this decade...

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ah well thanks for repeating your thesis.
it seems that Lithium is virtually the only part of the battery that is not substitutable.
Is it a project you see will get built?
the reason i ask is that you dont own and have no sentiment.

cheers contra

SVM Price at posting: 71.0¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

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