LTR

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90.5¢ liontown resources limited

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Dandelion

204 Posts.

469

21/04/23

08:54

Post #: 67388409
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Originally posted by Acgm: ↑

Thing about grade produced is that it may not always be the correct production decision to produce the highest quality grade of spod (as in SC5.5 or SC6.0 or SC6.4 etc) as possible.

We’ve seen in announcements in other producers that when demand is lower then it is economically sensible for a miner-producer to increase the Li percent in spod sold so as to attract attention for sale from the lower demand.

But when demand is high it becomes economically beneficial to balance the quality of product against the increased cost to produce at a higher grade. It’s not a linear cost curve to increase lithia percentage in spod when also taking into account plant recovery rate. If customers are screaming out for lithia units and you can produce and sell more lithia units faster by dropping final produced grade you may demand less $ per tonne sold but you sell more tonnes per quarter (while making more percent profit per tonne sold) bringing in greater profit in that time and thus you pull back from higher grade output to satisfy customer demand at the high price they are prepared to pay when demand high and supply “low”.

Anyway - focus on “what’s the SC grade being produced as shown in quarterly announcements” means something different depending on demand/supply dynamics but does not necessarily mean what that plant is “capable” of producing.

Of course having a resource with inherently higher percentage of Li contained and lower percentage of problematic impurities is always helpful to further maximise that return per above. Happily LTR has that in its deposit which was a big part of my decision to park capital here 4 years ago and continues to be a big part of why I choose to continue to leave that capital here while being amused by the shorting and other games going on around the long term view I hold.

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Everything you've said is true, and it sounds like you're as tired of anatol's distortion as I am.

LTR Price at posting: $2.72 Sentiment: None Disclosure: Not Held
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Last 90.5¢		Change -0.020(2.16%)		Mkt cap ! $2.194B

Open	High	Low	Value	Volume
91.0¢	93.5¢	89.0¢	$26.09M	28.68M

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No.	Vol.	Price($)
7	472933	90.0¢

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Price($)	Vol.	No.
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No.	Vol.	Price($)
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Price($)	Vol.	No.
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