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I am interested in MLL as an investment.However I still do not...

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tendoji

419 Posts.

680

18/08/20

12:42

Post #: 46620871
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Originally posted by Ubique13: ↑

I understand your point, but what use is a huge NPV if it is never actually going to get off the ground?

Which customer requires 4 million tones of spodumene concentrate (20Mtpa mine)?

Who is going to give Nigel the required CAPEX for a 20Mtpa mine? ($1B?)

Economies of scale aren't infinite, 4.5Mtpa is already a large scale operation, realistically how much more could costs come down?

Does the geographic location (distance) and infrastructure in the region i.e. roads, trains, barges etc support producing any more than 700ktpa as per the DFS?

Contrary to your point, I am confident that MLL's DFS will show that Goulamina can produce profitably at current spod prices, as opposed to AVZ which is at the mercy of the current low prices.

Furthermore, MLL has only scratched the surface of the deposit, there is likely to be more than double the known resource sitting there in further thick parallel pegmatites from near surface as every exploration campaign has turned up more and more.

Obviously we don't know what will happen regarding financing arrangements, but MLL has less shares on issue than AVZ, and can produce at a much lower cost at less than half the capacity of AVZ, so you would have to be thinking that MLL has much higher potential to produce greater earnings per share in the future.

The $ will flow to the most attractive investment, and at current prices, it's a no brainer to bet on MLL. I don't want to s**t on anyone's hopes and dreams but I seriously just don't see a positive future for AVZ. If I did, I would buy shares.

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I am interested in MLL as an investment.
However I still do not understand why the lithium sulphate production proposal has stalled.
Please explain.
Because your posting on selling “spod” profitably does not fit the MLL management’s intention.

MLL Price at posting: 15.5¢ Sentiment: None Disclosure: Not Held
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