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point 3:That could explain why they spent 6 months saying they...

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Nihilius

488 Posts.

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21/02/23

09:02

Post #: 66362673
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Originally posted by OZTA: ↑

There is a lot of great info to take from that interview and below aremy observations/opinion/question:
The offtake agreement between SQM and Azure will be finalised this week. SQM is entitled to an offtake right in respect of 25% of all lithium product in which azure (60%) has an interest in. What about Creasy’s 40% … Good luck negotiating with him.
In Tony’s interview with Crux Investor in November 2022, Tony mentioned the budget has allocated 1/3 of the funds to lithium, with nickel being the priority. Now, Tony has doubled down on lithium with 2/3 of the budget allocated to lithium and 1/3 allocated for nickel exploration.
THIS IS MY OPINION AND NOT ADVICE: My guess is that on-ground mapping and sampling for lithium commenced around April 2022, with the first set of assays announced 6 months later as Tony “wanted to explore further for credible results before announcing to the public”. Tony further states, “a lot of Australian junior companies say they are going to look and the SP goes up and down”. What’s my point…? Well apparently SQM called a few hours after the release of this announcement (12^th October 2022) and visited the site. Only 1 week later (19^th October 2022), AZS announced further assay results and SQM were “getting more keen, without drilling a hole at that time”. I'm far from a geologist and I don’t mean to persuade anyone, but I’m getting a vibe these targets aren’t being drilled for the first time. Don't quote me on this, just my intuition.
Question - Is it standard for offtake agreements to be discussed before drilling has even commenced?
Also found Matthew Gordon’s comment intriguing, “RIO Tinto will put down 3 million for a 7 year auction with 100 companies. But SQM offer 20 million with a serious intention of 19.99%”.
I’ll leave with this comment made by Tony, “there are quite a few lithium deposits in WA that have been announced in the last 1-2 years, ranging from 10-15 million tonnes at 1.2% lithium oxide. None of them have progressed to production. The big ones (i.e Mt Holland) are well north of 100 million tonnes. SQM would not invest 20% for 10 million tonnes, they came with the expectation to find north of 100 million tonnes”.

Honestly, good luck to all. Especially the long term holders.

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point 3:

That could explain why they spent 6 months saying they were just about to start drilling at woodbrook, atrium and the other VC targets but seemingly never did.

Drilling for lithium instead.
AZS Price at posting: 30.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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