Its a cracker of a report. 1st production first half of 2024...

Its a cracker of a report. 1st production first half of 2024 with a capex of $473m for 2.5 mt and only $66m to get it to $4mt mine.

Funding discussions with tier 1 financiers well underway, with more than 50 participants wanting offtakes. They remain uncommitted to keep open all possibilities.

Mine only NPV $6.6B if the last 3 months average spot is used.

Total integrated mine $2b CAPEX and NPV of $10b. (Roskill figures not actual current pricing)
The integrated mine will be one of the largest outside China and the 3rd largest Lithium Hydroxide supplier globally.

Down stream PFS to commence Q1 2o22.

"Discussions with potential customers are proceeding on the basis that the price of SC6.0 will be determined with reference to the lithium hydroxide spot price, the objective of which is to achieve an outcome that is at least as favourable as the spot spodumene price, as it ensures that Liontown captures its fair share of the convertor margin."

"In parallel with the DFS, an update to the October 2020 Downstream Scoping Study has been completed to review the feasibility of an integrated downstream processing refinery for the Kathleen Valley spodumene product given the revised physical and financial outcomes (ie mine grade, production and concentrate output) presented in the 2021 Kathleen Valley Lithium Project DFS, released to the ASX 11th November 2021. A PFS-level metallurgical test work program to support potential further work in this area will commence in late Q4, 2021 utilising SC6.0 produced as part of current pilot program."

"The DFS was evaluated based on the production and sale of SC6.0. However, based on test work the WOF flowsheet gives considerable flexibility to produce multiple grades (6 - 7% Li2O) for periods of the mine life, which is expected to deliver sales and operating cost benefits. Further grade related optimisation will be undertaken as part of ongoing off-take discussions."

"Approximately 7Mt of waste rock will be generated from underground over the life of mine. All waste will be trucked to surface and tipped into the open pit void adjacent to the portal or taken to the surface waste stockpile, if required." (ONLY 7MT over life of mine!! )

My conclusion. This is one of the best and largest deposits that will be full integrated with BUL feeding this too potentially. Much news is short burst to come now and SP will be much higher than what we have seen recently. I expect well over $2.50 by end of December and $3.00 by March 2022 when we also have a better picture of BUL....Spod prices will stay high for a long time. As Scarpa mentioned new supplies will come to market BUT it takes 7 years to build a mine from scratch and nothing is coming yet, beside KV. Expect spod prices to go higher and stay higher for longer IMO