porker, I agree with your general take on the situation. Previously the cost to run carbonate through the purification process was basically matching the premium. If there was a reduced yield from operating the purification process then pushing the primary product was a rational choice to optimise profit. Ok as a short term strategy but, inevitably, the situation changed and now they need to crack on and increase the proportion of battery grade carbonate in their sales mix. Less concerned by the reducing premium for hydroxide - they are indicating the cost to convert primary carbonate at $1,500/t which is in the same ball park as their cost to upgrade primary carbonate to battery grade carbonate. Also some advantage to shifting some margin to a 75/25 JV in a different tax jurisdiction. Also some yield advantage in that 9,500 t of carbonate produces 10,000 t of hydroxide. Also product diversification which can only be a good thing. Lets hope the hydroxide plant runs closer to design numbers than the SDJ phase1 facility.
ORE Price at posting:
$2.74 Sentiment: Buy Disclosure: Held
