I forgot to add, all this talk and these constant negative posts about current spod prices, is totally overblown in my humble opinion. Yes, linked to in a way, but almost irrelevant to LTR. We are not selling to the spot market. There is not one price for spod, and all spod isn't created equal. What's the price of v low iron and impurities SC6 compared to lower grade SC5.3 that PLS are churning out for example?
Look at the prices that the likes of PLS are getting. Contract pricing is totally different to spot prices, the volumes of which are tiny in comparison to long term deals.
It is an indicator, yes, but as LG have said, they are here as partners. In very lean times, they are not going to lowball us. If we go out of business, that's not going to benefit them is it? Our offtake partners want decade plus long high quality IRA compliant supply. Greenbushes doesn't qualify. I don't like PLS's ethics and business approach, selling to whoever they please, without a care for others in the market. I'm sure many buyers feel the same. When prices are super low, our partners will have our back. When prices are sky rocketing, we will reciprocate and our terms will be very favourable to them. That's what a partnership is. Mutual support. LG get it.
We will have the same / similar agreements with the likes of Ford and Tesla. The former has already offered us reasonable finance times in our time of need.
So yes, shorters will be putting out stories that our costs will be high in our first year or so (likely to be true), and that margins are likely to be slim, but li prices won't be down at these basement prices for long. Many brokers are already conceding the African and Chinese endless supplies myth is a load of tosh, and that a bounce is likely before the end of the year.
Most of the processing plant is already capable of upping output to 4MT p.a.. There's probably therefore around 1MT or more we will have uncontracted in 2026, to take advantage improved Li prices.
The likes of RIO understand current pricing is largely irrelevant. Deposit size and project longevity is key.
Thanks
@wazza2282. Buldania is probably worth $200m already, undeveloped, if CXO and their scattered litter of small deposits is anything to go by? I see that being sold off rather than us developing it. KV is the main game for decades to come, but Buldania is icing on the cake for sure.
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