CAPEX Discussion

Given the DFS is due mid year, good time to start a discussion on expectations for CAPEX.

So the original PFS for the company was April 2020. So now over 3 years old. In that PFS, CAPEX was slated as $544M USD for 25.5ktpa plant. Equates to $21.3k/t.
https://lakeresources.com.au/wp-content/uploads/2020/04/lke_compelling-pfs-for-kachi-project_30-apr-20.pdf

Steve then released a "revised" PFS in March 2021, ie, he bumped the carbonate price. So in the space of almost 12 months, the only thing that changed was the carbonate price. The CAPEX was not adjusted.

We now wait patiently for the DFS to arrive (as due last year). It is now 2023. So 3 years since the PFS.

Recent DFS's for DLE include vulcan and anson. Both of which come to a CAPEX of $39k/t.

Using those recent CAPEX numbers leads to a CAPEX for 50ktpa of $1.9B USD

Goldman Sachs recently recently a report on DLE. In that report they include LKE, vulcan and anson projects (amongst others). They claim a CAPEX for DLE of $26-$34k/t. LOL.

Using Goldman's crude numbers gives a CAPEX of $1.3B-$1.7B USD


Discuss