We hit 41c back in January 2020. So many good Company level...

We hit 41c back in January 2020. So many good Company level announcements since then.

The pandemic arrived and the world investment community went "risk off" ... and here we are at 21c ... and undervalued.

Ken has said all along, he's sticking by his offtakers. They've been slow to develop their Stage 2 chemical conversion facilities.

An old article:

https://www.reuters.com/article/china-metals-lithium/chinas-general-lithium-to-launch-60000-t-spodumene-converter-by-end-2020-idUSL3N21U1DJ

"General Lithium Corp ... to start building a lithium plant ... that will more than triple its capacity by the end of 2020"
"General Lithium currently intends to make 90 percent of the new plant’s output as in-demand battery-grade lithium hydroxide and 10 percent lithium carbonate."

We really need the Spodumene market to rationalise in our favour. Binding agreement minimum prices get thrown out the window, as producers (AJM) get desperate to make sales to survive.

A year ago we hit 88c (although 18% dilution since, reduces that to 72c), so its hard to get "yippy yi oh" about 40c.


The pandemic has really knocked the stuffing out of every business. Government largesse keeps consumers spending in the short term but eventually, we all pay. The EV battery chain may be one of the few places to successfully invest money for the future.

Stage 2 of the EV battery chain needs to expand. The Ganfeng SP is indicative of that.

To reiterate:

In mid Nov19, PLS released their Corporate Presentation for the 2019 Cathodes conference.

http://www.pilbaraminerals.com.au/site/PDF/af59a96f-3bb9-4ee5-a1c1-d716d73b3150/CorporatePresentationCathodesConference2019

On page 13, it referenced Chinese Spodumene chemical converters:

"Approximately 20 facilities already in operation. Export capacity growing. Approximately 15 facilities in varying stages of construction and/or commissioning, including many new operators without existing offtake in place"

The size of each facility isn't mentioned, however I would expect that the newer facilities would be larger than existing ones. Will chemical conversion capability double in 2020, requiring double the 2019 Spodumene supply?

GL stepping up to take their 150ktpa towards the end of the year would be good for us. Yibin Tanyi is in for 75ktpa and Great Wall 20ktpa.

Will Ganfeng protect their offtake agreement and step up?

The POSCO JV development decision has been pencilled in for June 2020 and in turn the Stage 2a expansion. Twas interesting to note the Quarterly mention, that they could have Stage 2a up and running in 9 months, once they get the nod.

If the market is truly forward looking, a SP of 72c may be worth a look at, later this year. Hopefully Spodumene prices would have reacted to increased market demand by then too.