Moin Moin,
once again I take the liberty of making a modest comment on current developments.
Yesterday, the three provincial governors of Jujuy, Salta and Catamarca, who form ‘la Mesa Del Litio’, met to agree on a joint approach to RIGI.The province of Jujuy has already joined, Salta and Catamarca are in the process of doing so.
About Jujuy(Express treatment
)The initiative promoted by the provincial government
was approved in just one week, although a draft popular initiative was presented that rejected it.This express treatment was heavily criticised by some oppositions.
Some examples of the slogans:
- ‘The governing party has put on the libertarian shirt’
- ‘hand over our sovereignty’
- ‘This new regime not only facilitates the entry of foreign capital, but also grants excessive benefits to foreign companies at the expense of national industry
- ‘the RIGI “ binds the provincial state for 30 years and brings extraordinary profitability to foreign companies ”
- It is a combination of privileges for capital and restrictions on local industries that no serious country in the world implements.’
- ‘the subjugation of provincial autonomy ’
- ‘the main winners are the mining companies’
Status in Catamarca:There are still two proposals to join RIGI that are currently being discussed in the provincial parliament.Here too, the aim of the provincial government is to implement the accession as quickly as possible, perhaps as early as this month. The opposition's criticism is similar to that in Jujuy. In my opinion the prospects of success of the protest are similarly low as in Jujuy.Every responsible member of parliament who is not just playing ‘patronage politics’ and shouting slogans to that effect recognises the enormous economic opportunities that this unprecedented instrument in Argentine history offers for the country as a whole and for the mining provinces in particular.The estimated potential for investment that the RIGI has with copper and lithium projects in the three provinces of Jujuy, Salta and Catamarca amounts to
USD 19 billion and the creation of
around 15,000 jobs in the construction of these projects.It is excellent, and in my opinion also necessary, for the three provinces to agree on a common line.
There are increasing signs that the following RIGI arrangements will be adopted:
- Mining licence fees 5%
- Preferential selection of local suppliers
- Preferential participation of local labour
It should be noted once again that there is currently a huge investment backlog, estimated at 19 billion US dollars, in the Argentinian mining sector, which can be resolved very quickly if the RIGI comes into force in the provinces. Initial examples in San Juan with BHP or in Río Negro with YPF have had a signalling effect.
Starting position for
Galan- projectsIrony mode on -
an unimaginably high sum if you look at the equivalent value that the project economy could deliverIt's hard to imagine that even a fraction of the 19 billion on hold are interested in the following- Irony mode off
• One of the highest grade lithium brine projects in the world• Best Argentine lithium resource • Lowest impurity content of any known argentinian salar(equal to „Tres Quebradas“ von Zinjin)• Lowest quartile of the lithium cost curve•Galan's product only needs to be polished to produce lithium metal (One Step!). • Battery chemistry is trending towards lithium iron phosphate technology• Ownership of 100% of the complex• Permits for phase 2 are expected before the end of this year • Expected first production next year• Not rely on experimental DLE technology• Strong support from the provincial government(governor, mining minister) Management Board continuously invests private capital• The market capitalisation is currently around 43 million US dollars. DFS 2 delivered an NPV of over 2 billion US dollars. If the assumed long-term lithium price from the DFS is halved and the RIGI benefits are taken into account, this still results in a value of over 1 billion
I don't know of any other stock in which the Executive Board continuously invests a significant amount of private capital, despite the devastating market situation in the lithium sector. Have they all gone mad(like me) because they've drunk too much Brine? One or two crazy people is normal, but all of them?
JP on Diggers& Dealers (06/08/24)...but I can also mention that last Friday we received approvals for the commercialisation of our lithium chloride...it is no longer an MOU......very close to funding....
To those who doubt DJ's marketing skills, to those who doubt JP's management skills, to those who don't believe in Argentina as a country and in its ability to awaken the mining sector from its slumber:
Wait and see (not too long
)@mondyinvestand to my very special uninvested friend who, in his purely altruistic way, warns everyone here and disqualifies DJ's placement as too low because "mondy" is obviously in a better position to judge the private financial circumstances and investment opportunities of this board member than the latter himself:Congratulations on your respect and prophetic gift! Keep up the objective judgement!
Have a nice Thursday
Smith71
(20min delay)