Hi @GCar Spot on as usual. Probably the best source of the info...

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acwbagnall

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02/02/24

13:24

Post #: 72205108
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Originally posted by GCar: ↑

That’s what I was concerned about.

I was hopeful that there was some more comprehensive underlying analysis (perhaps there is?).

For example, if I have a 1% Li2O ore that costs me $50/t, can I simply say that is equivalent to $300/t SC6…?

No, of course not, because it ignores the processing required to advance the 1% ore along the value chain, to an equivalent point of the SC6.

The same concept applies to brine vs spod, although this is far more complicated as they are very different products with different processing!

In this case, for the sake of clarity, consider this simplified example with “random” figures:

SC6 @ $500/t

Requires 8 tonnes to make 1t of final BG chemical product (say carbonate)

Therefore cost “equivalent” to $4000/t LCE

Processing to BG costs additional $2000 per tonne of BG product

Total cost = (500 x 8) + 2000 = $6000/t

Chloride @ $1000/t

Requires 3 tonnes to make 1t of final BG product

Therefore cost “equivalent” to $3000/t LCE

Processing to BG costs an additional $4000/t of LCE

Total cost = (1000 x 3) + 4000 = $7000/t

In this “random” example, the chloride technically costs less per LCE than the SC6, but it actually costs more to produce the final product.

So, it all depends on what that “additional processing” cost is.

I’ve chosen the numbers above to highlight the point that I’ve been pondering, although I haven’t yet delved into whether the company has presented its figures in this context or not, yet.

If someone else knows, it would save me (and others?) some work.

A very interesting topic, imo!

Cheers

Ps. I’ve been here since the Dempsey days and see great prospects for us, although I haven’t been paying as much attention here as compared to some of my larger holdings

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Hi @GCar
Spot on as usual. Probably the best source of the info you are after on conversion cost comparisons would be the below announcement from NMT on their ELi purification trial. This was actually performed using a 6% chloride brine sample sourced from Galan.
As you can see - quite favourable economics.

Last edited by acwbagnall: 02/02/24

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Hi @GCar Spot on as usual. Probably the best source of the info...

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Hi @GCar Spot on as usual. Probably the best source of the info...

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