AZL General Discussion, page-3193

.if you look at a lot of these companies saying they have a agreement you need to read the fine print as some are non binding agreements & have clauses where certain conditions need to be met for them to come into effect.
i.e i can have a agreement with a company to take X amount of supply by set date but if i dont do that for any reason that can be void.
this latest VUL one :
Volkswagen Group is to purchase a minimum of 34,000 tonnes and a maximum of 42,000 tonnes of battery grade lithium hydroxide over the duration of the Agreement.The Agreement is for an initial five-year term and the start of commercial delivery is set for 2026. Pricing will be based on market prices on a take-or-pay basis.volkswagen Group and Vulcan have also agreed to a first right of refusal to invest in additional capacity in the Zero Carbon LithiumTM Project. Conditions precedent include successful start of commercial operation and full product qualification.
now if you looking at what we might sign a deal for i have no idea...but as another poster posted today look what company following us on twitter that close to us...KORE POWER.
if you looking at what market cap should be look at poster from a few days ago...we estimate 20mtpa at weighted average of $18,353USD a tonne with average industry cost of up to $4000 a tonne...so $287,600,000 USD per annum at lower estimate...current price per tonne $30,000+ USD.
so this figure used is lowest estimate.
AZL have stated main cost to produce lithium was sulfuric acid cost & they suggest flow chart showing they can use 2/3rds less acid & using less water & finished product wont realistically move far...so lower costs too.
so thinking cost wont be $4,000USD a tonne like industry average...and every $1USD we save on cost is $20 million USD added to kitty.
with current resource it 20mtpa for 16yrs...with updated resource once drilling approved it 20mtpa for 50 plus years.
at current lithium price if we were selling today it today 20mtpa@$30kUSD a tonne it 520million USD for first year..730 million AU profit.
and that price without factoring in any cost savings...ie every $1USD drop in cost is 28million AU to bottom line.
nor is it factoring increases in lithium prices for 5-10 yrs based on long term supply demand issues.
so not unrealistic to say 1 billion profit AU per annum
so what is market cap of a company with a billion AU profit per year?