Great post
@Process1
No one can know lithium processing better than you.
You know all of the lithium mines in operation.
I also thank all the posters who informed us about the AGM.
Btw, I want to remind you guys that we will most probably receive another bid at $3+ soon and that should be from Gina+xxx. It might happen before Feb 2024. I think that's the reason Gina doesn't want a seat in the board, otherwise she can't bid.
I said this on my post #:
70602676 on Oct.29. And I still it will happen.
"
What I can see now is that we are going mining. That's for sure now, unless we receive another takeover offer. I am still thinking that LTR may receive a bid by a major but this time it's highly probable that Gina would in the bidder side. That might be Gina-RIO, Gina-ALB, Gina-Xxx. I don't think Gina would be happy to buy LTR alone because it'd be even expensive for her. I don't think she would play mind blowing, legally ok buy unethical games over LTR to acquire it.I'm happy to hold long term and wait for the divvies. Or I may think to sell out along the way because the sp will recover and we will cross the roads towards $3, $4 and $5."
Because Gina knows the value of KV Project. The profitability of lithium business, if you have a project like KV, must be very clear to her. Gina knows that very well as she is in mining business since 1992, she knows the cycles in mining, she knows the value of a high grade mine in Australia.
Greenbushes is printing money and it will keep doing it.
And KV is same calibre mine with Greenbushes in terms of grade and ore body type, even better with its technology and infrastructure.
She knows the value of KV project and lithium business very well. Here are couple of examples;
IGO bough 25% (of Tianqi's 51%) of GB in 2020 for $1.90b including 50% of Tianqi's Kwinana refinery. IGO said on its Sept quarterly that the dividends they received from GB has now reached to $1.8b. That means IGO already received all the money they paid. And that happened only in 2022 and half of 2023, which means in 1.5 year.
Can you see the profitability of a good lithium mine?
Another important point is here;
Greenbushes mine Sept Quarter financials from IGO's quarterly report shows that
GB mine made US$ 1.345b (AU$2.39b).
At the same period BYD has made US$1.46b (RMB 10.4b) profit.
And just consider that this is happening at the low lithium price environment when GB JV partners decides to cut down the sale by 25%. in Q1-2024.
BYD manufactures both EV's and batteries. BYD is the 2nd largest battery manufacturer (18%) after CATL (38%). BYD employs tens of thousands of workers.
However BYD still can't make much bigger profit than one lithium mine; Greenbushes.
LTR is similar to GB and even more modern. Just will be half capacity.
LTR's money printing machines will be ha;f of GB. But GB's life is less than half of LTR's KV.
These are the facts. I'm talking by numbers.
So Gina knows all these, hence she must bid.
Again, I'd be happy if we go mining, but these are the facts. She must bid and get KV project if she is smart enough to see these facts.
(20min delay)