I've been reading your comments and enjoyed your contribution a lot. I've been a holder since HWK days, and like many have rode the highs and lows. I have a questions re. the current lithium carbonate price and how that impacts the upcoming PFS?
1. Will AZL use a forecasted price based on projections or will their costings be based on current prices? As everyone would know by now battery grade products and spodumene 6% prices have been hammered and I'm wondering how this manifests in the PFS? Do they provide different scenarios on lithium price forecasts, or will they be bound by the current price and hope the market can see demand and prices returning towards 2022 highs?
2. Do you discern our potentially low CAPEX and OPEX costs outweighing/making up for the current low carbonate price, thus returning strong NPV? Macro factors suggest we are announcing a PFS in challenging times - low product prices, high interest rates (borrowing costs), inflation etc.
I'm not an engineer but have good understanding of discounted cashflows, rates of return, NPVs etc. The answer could be obvious but I wanted to see your thoughts.
Thanks for your commentary
Damien
AZL Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
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