CXO (ASX) Banter and general comments

Originally posted by WhatsTheTip: ↑

A few thoughts for the day.

Tesla's new Semi. From what I've seen/read this is a potential game-changer in the heavy transport space. If it is, lithium demand is going to have a new demand source - heavy transport. Every Semi is perhaps 10 EV's in terms of its battery size. This will add to existing demand from EV's, Stationary storage and other passenger transport like 2 wheeler's and buses. Some models may have zero demand attributed to this so any demand is upside that reduces any forecast surplus / increases projected deficits (and in the process keeps spod prices high).

Some action on the ground appears to be happening at Hang Gong. The ground cover is frequently disturbed in drilling and sometimes you can see this on satellite maps. The three red dashes may be new Gang Hong drilling within the last month. This is good news because the July 2022 resource update had Hang Gong being an open pit with the pre-strip happening in 2031. You don't need to do any drilling or other on-ground activities with this resource on that timeline unless you are planning to change the timeline. To increase capacity is going to require bringing on a new resource that runs in parallel with BP33 starts because Grants is mined out after about 2-3 years or around 2025.

Is this pre-work around bringing forward Gang Hong? When BP33 is operational, there's a brief double-up with Grants. If Gang Hong is brought forward, this double-up becomes longer. If Carlton is also brought forward to run concurrently with BP33 you have the extended double-up necessary to allow a production expansion. There's still the shorter life of mine to deal with but that's what the big exploration budget is for. When the ore source for additional capacity is sorted, an investment in the DMS to do this can be considered.

So here's the question - why clear perhaps 1,000sqm in an area where the official plan is to start pre-strip in 2031?
I'd suggest its more evidence of behind the scene's work on the somewhere in the future capacity increase.

That clearing is about 30-40m across.

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Great read Tip, thank you.

The one problem we have is that Tesla semi's will never qualify for australian roads due to the regulations as they are too big!

While that's true, I say it tongue in cheek as even if they never make it here others will. There is also a movement happening in australia to retro fit existing semi's that is facing (unsurprisingly to anyone who lives in aus) slow moving regulatory/road rules hurdles to get going. Another company I own (and wouldn't recommend at this point so no cross promote) is working to try and make existing semis with interchangeable batteries so that you can pull into a truck stop and change the battery in a matter of minutes with say a forklift and be on your way in around the same time as refueling.

These are the sort of hurdles that the industry is facing and (slowly) finding solutions for. So as we all know the change is coming and the white gold we have will be highly desired..... And the yellow stuff we have too.

Good luck all hopefully there is an announcement soon to keep the restless holders happy. Unless you need to sell now, don't worry about the short term price we all know where its going.