@Scarpa has hit on an issue I struggle reconciling/understanding which is why RNU's FID is not closer than current considering PSG supply outside of China is almost nil. RNU has been in a position of early mover for years, but we still haven't gotten to FID and that a lot of the work which has been done appears serialized resulting in delays. PEPR took a long time, now DFS and FID takes it almost a year down the track then we'll have construction, then production. It seems like a cumbersome process that leaves the question: why? Why isn't FID closer/done. Why don't we know our NPV (as
@TenX suggested).
From my layman's perspective, I see agreements and discussions occurring on the cathode side regularly, but relatively little on the anode side. This of course opens the door to question the relative deficiency in anode material supply - is it factually deficient and is a (possible) lack of deficiency a contributor to delays in FID and offtakes. If there were structural deficiencies (possible/probable) in anode material supply as there is (known) with cathode, then why isn't more effort being made to solve the problem?Is RNU solely waiting for positive changes to graphite material price (as
@TenX suggests). Or are our prospective customers not worried about supply chains for this material resulting in lower demand hence no binding agreements?Existing producers must be getting material from somewhere which currently is probably ex China and US tax incentives must be motivating them to source material in a partner country which should trickle down to suppliers like RNU et al which should be resulting in demand feeding into agreements and FID.
As both
@Scarpa and
@TenX have said, those agreements could be formulated to link to market prices in various ways and it hasn't stopped a Li producer to letting their customers set the price (auction).
@TenX, what material updates are you referring to which may be more difficult to apply pricing to NPV? Are you refering to production equipment or PSG/graphite supply pricing.I do have faith in DC but in this case, RNU is leaving too many questions open for shareholders to speculate on.
Before anyone suggests there's ulterior motives to my comments, please, just don't. I like others are heavily invested and must check in on health of that investment, this is a part of that process.
C
(20min delay)