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17:54
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Originally posted by Megafauna:
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Here is JB’s response to my query about mid-stream processing, draw your own conclusions. Firstly, thanks you for the support and comments show which are both balanced and measured, the lithium market is extremely dynamic and somewhat challenging to navigate. Unfortunately we are fundamentally linked in our share price to the lithium commodity price, what we try to achieve is cost control and fiscal management in order to navigate these markets. From my end the current market is still quite buoyant - pricing levels and market penetration still looks extremely promising. In regard to midstream - it is a perfectly valid point that we have (and will consider), there are probably some differences to PLS and MIN (both of whom I know vey well) in regard to the undertakings with the Government of Quebec and the alignment with what we have at NAL. The trade of study we have received is focussed on lithium carbonate as we have a considerable investment and equipment to deliver carbonate on site, other than someone starting from scratch. However in saying that, the midstream provides lower capex, reduced reliance on technology, it ha great merits, this is probably pertinent to Moblan. Our strategy is relatively simple in regard to what we are comfortable in delivering (mine, processing, lithium oxide concentrate), we do need expertise in the next phase of downstream. This then dovetails into what we need from partners, the objective is to gain downstream exposure (beneficial and economic) without any risk to Sayona. The partner engagement we discussed is based on bringing in IP and delivery ability to Sayona, we are considering all options and you have provide some excellent alignments as to our thinking. I have hopefully answered some questions but it is quite complex and heavily reliant on partners / technology. If you have any further queries please do not hesitate to contact me.” Kind regards James
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Thanks Mega. I did eventually find your post on the matter. It was on the 15th of December. What JB said is very interesting. It appears they are focused on carbonate at NAL, no mention of Hydroxide in his email to you. They have also considered midstream, possibly for Moblan. Finding the partner(s), expertise and capex is what is needed to progress both NAL & Moblan. That's how I would summarise his email response to you. Lets hope 2024 we find those partner(s) & expertise. We will need to be creative in regards to financing, because the current lithium price obviously won't assist us in the short term towards capex for either project.
(20min delay)