Did you get a chance to read today's investor presentation.
This caught my eye and is exactly what I've been harping on about -
" - Tianqi and Albemarle (co-owners of Talison) have expressed that no spodumene will be made available for third parties, essentially creating a supply monopoly in China
— Mt Cattlin has become the only new supply of spodumene into the market and Galaxy is uniquely positioned with existing customer base from its previous Jiangsu operations – offtakers already signed with premium pricing. "
page 18
Greenbushes is turning off the tap to the independent converters.
Mt Marion is locked into Ganfeng.
That's it.
Only Galaxy's Mt Cattlin to supply the Chinese independent converters next year (and possibly quite a bit longer).
The spot market consignment in Q4 is looking like a very good move. Could be followed up by a complete focus, after the next 120kt is sent, on this way of selling (auction - no contracts) until there are more suppliers. Lithium E-Bay. Desperate bidders.
Some people have expressed concern that these independent converters could be consolidated by the Big 3. This could happen but I don't see them turning their back on Galaxy's supply.
They'd be buying them to shut them down if that was the case - when they could be making $200m USD/year processing the spodumene from Galaxy. If anything, our company becomes another very wise short-term acquisition target.
Galaxy now has a crucial role over the next couple of years in keeping the Chinese spodumene industry afloat until perhaps PLS is able to help out with a reasonable amount of production in 2019.
Do you see where this is going?
