I agree bomber, J Cap tapped them on the chin with a feather.
"Analysts estimate the capital cost of the project now planned for 50,000 tonnes per annum of Lithium will be $1 billion."
The number is actually US$1,032m (note US$)...and J Cap never mentioned a funding gap or Cap raise or SOI, whether potential or otherwise.
Oh! btw US1,032m = AU$1,530m
J Cap wrote about the Medium (ceramic beads), being expensive and uneconomical, but failed to include the enormous need of reagents/acids in Ion exchange DLE.
Orior Capital report:
"Major reagents consumed include sodium carbonate, sodium hydroxide and hydrochloric acid."
"Based on Lilac’s testing, use of reagents is typically 2 tonnes of sodium hydroxide and 4-5 tonnes of concentrated HCl per tonne of lithium carbonate produced."
Therefore in regards to OPEX:
If "bead costs per ton of lithium carbonate would be between $30,000 and $100,000 per ton of lithium carbonate." (presumably US$).
Add the cost of reagents / acids
Add the inflationary costs of lending rates (OECD CIRR rates and other).
J Cap missed Orior Capital Limited in their list of LKE paid promotors (undisclosed renumeration).
Steve resigned on 17 JUNE 2022 (not 20 JUNE 2022), and Promnitz told the AFR the Lake board asked him on 31 May to help transition the company to a new CEO. That's 2 and a half weeks in the planning, not 6 months as LKE report. Probably explains why a replacement is taking so long.
Anyhow, there are lots more opportunities for short reports, as the truth-telling stage starts to roll out (DLE data & results, ESG assessment, DFS, ESIA.
IMO DYOR
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