CRML executes Shareholder Agreement with Obeikan for JV50/50 JV to build lithium refinery in Saudi ArabiaExclusive offtake from Wolfsberg spodumene mineUS$0.03-0.04 cts/kWh power costs very attractiveBMW offtake agreement assigned to new JV – US$15m paid inLithium price in bottoming process CRML pass through value still > A$0.50/ EUR share KEY POINTSJV execution allows renewed progress at WolfsbergSaudi Arabia lithium refinery will have very low energy and other operating costsLithium market may recover soonWatch Gangfeng share price!Acquisition of TANBREEZ rare earths will be a game changer for CRMLEUR still ridiculously pricedRe rating must come soon
Good infrastructure, low energy and other operating costs and encouraging official development policies. CRML will be funded by Obeikan with very low cost loans repayable from cashflows. Also be aware that spodumenes might be everywhere but grades might not be high and available spodumene might not be plentiful.
The low of February 2024 produced a good rally but prices fell to new lows. This is well below costs of production for many producers. Do keep in mind that inventory adjustment throughout the supply chain affects the market price. Resolution of this may produce a sharp price response. Or not, of course.
The bottom called earlier this year was premature but note this ETF should bottom around here in this quarter. If this reading is correct and this ETF completed C wave for Wave 2 then new highs will be coming through eventually.
The consensus is that lithium prices will rise to ~US$20,000 and stay there forever. But just note what happened here. Big volume. Flushed out seller. Price doubled in big reversal.
Remember back in 2016 when iron ore was US$30/t and destined to stay there because Australian costs of production were down there. That was called at that time as a C Wave completing a Wave 2 and that new highs would be seen. Which is what happened. CRML Not much price history but some big volume and some good technicals suggest this just might soon fly.
UR - Ready to break out. Some classic technicals. Wedge broken.Back tested downtrendQuick move coming on break of A$0.058
