Very nice report as usual with Beer. Not a great deal of change...

Very nice report as usual with Beer.

Not a great deal of change but a couple worth noting..
The area to the far north that oz and I pointed out last year as a definite target.
South of the northern tenement where I am not so sure of success.
Drilling of the main area to identify resource in the main hill either side of previously drilled areas.
(this was never drilled due to needing quite a lot of excavation for drill pads)

All of this has the chance to increase resource size by maybe 10mT
Not of much interest to me personally where I don't value LOM as highly after 15 years.
However the broader market would certainly like it and it would increases the argument for a 2mT mine.



The table I always go to first on Beer reports below. I do like the way they work on a higher figure until 2022. This is eactly when I think we may have more supply decreasing prices.

However, Beer (and quite rightly so) do not consider further upswing between now and 2020.
Should the price of Spodumene close to USD 1000/t then a pull back may be to there high case of USD 650/t

The upshot is that in a market like we are in their estimations are very much on the low side as they should be. The target for me with a 2mT mine is closer to $1 if all were to go right and not for some time. A good funding model with minimal dilution, Spodumene prices considerably higher,  addition resource, possibility of tech grade and getting to market in the estimated time frame.


Also, this report shows the base (risked) case and does not show un-risked as previous reports.

At USD 600/t the un-risked would be around 84c per share based in the current report.
Based on. previous report at USD 600 giving 79c un-risked
If we guess at Spodumene at USD 800 before mining it would be a huge boost.

All in all, very nice...