“But Thurlow says even integrated suppliers who can take profits at multiple parts of the supply chain are likely struggling, questioning the efficiency of African mines once logistics costs are taken into account.
“In Australia it’s 16 days shipping. From Africa, 60 days, transport up to 1000km in small trucks compared to Australia, much shorter distances in large trucks,” he told delegates.
“So while mine gate Africa might be competitive, it’s hard to see that from a logistics perspective. So I would start to expect to see even integrated suppliers looking at different alternatives.”
Thurlow’s boss, Perth billionaire Chris Ellison, set tongues wagging on the miner’s financial results call last month, telling analysts, media and investors that ‘no one’ was making money at current lithium prices as he pledged to restrict supply.”
“In the UBS note today Han et. al. said the supply cut by CATL in Jianxi would reduce monthly lithium carbonate output in China by 8% or 5000-6000t LCE.
Barrenjoey previously reported that CATL had been nervous running the mine at chemical prices for the electric vehicle battery ingredient of under US$13,000/t.”
….interesting
dyor
AGY Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
