Lithium & The Future, page-4212

Thanks for the Podcast link Dr Manhattan .

It seemed to me to put Altura and it’s management into a very favourable light with expressions like ‘pleasing to see ‘
‘should be applauded’, ‘they have done very well’ and ‘arguably the most active ..’

Some rough takeaways ..:

The interview is with Canaccord Genuity analyst Reg Spencer who sounds a bit surprised by Altura’s successes.
Reg talked to these points;
- It’s pleasing to see the company with it’s costs sub $400 a tonne ...which is in line with the AJM feasibility study projections ...it’s arguably the first company to be able to do that.
Us$140M debt matures is about a year’s time.....could get messy.
They have done very well in terms of new buyers and keeping inventory in check ...
....Which comes down to the quality .... which is why Ganfeng wants the product

The process plant design is different to what Pilbara put in place... (a significant and ever- improving point in AJM’s favour )

Altura also got marks for “uptiering the quality of it’s off take partners.
Hopefully this will allow refinance down the track
Right now the balance sheet is the largest overhang ...along with how long long this low price pain will endure.

The story around the traps behind the Shanshan entry is that Shanshan was owed money by JRO and took the original tranche of JRO shares in lieu of debt.
What was more interesting was the strategic partnership with Altura Shanshan then entered (Canaccord Reg sounds perplexed?)
Altura have arguably been the most active in the market on the market in terms of securing good partners ‘but they had to’

(Interesting how sometimes a ‘trial by fire’ sets you up to be better placed to deal with subsequent ‘trials by fire?’ ..it tests the mettle so to speak)

The podcast then goes on go examine the situation at PLS where iron content and moisture are considered not to be terminal issues ..But Reg is not so certain they will get a bid for Stage 2 ..
The fact the off take rights already been sold goes against them. It’s a major hurdle for any buyer to overcome.


Interestingly Altura is NOT in this invidious position.
Interestingly Ganfeng has already put it’s hand up for up to 50% of Stage 2
Interestingly Altura executives made a ‘marketing visit’ to Ganfeng’s Xinjiang plant in July.
And (interestingly ?) Ganfeng is currently ramping up capacity at its Xinyu conversion plant.
https://www.metal bulletin.com/Article/3835148/Ganfeng-Lithium-to-invest-in-new-battery-grade-lithium-hydroxide-capacity.html Metal Bulletin wrote that in September 25 last year Ganfeng announced it would add a new 25,000 tonnes capacity lithium hydroxide plant to its Xinyu lithium carbonate plant site, at a cost of US$72.7M.
The project was to be completed ‘within 18 months’ ..ie by next March.

Notably, as of the Hong Kong voting issue last week, Ganfeng might have funding issues.
The podcast looks at the fact that, in the midst of current democracy issues in Hong Kong, Ganfeng needed to execute a Hong Kong rights offer .....it needed 67% of votes but only got 65%
The podcast suggested the vote could be recast but, if funding failed, this might be a negative for Altura as Wodgina was expected to be the priority.