When you benchmark the different processing routes to LCE, you...

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Mozza01

3,387 Posts.

2714

21/03/24

19:11

Post #: 73001294
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Originally posted by Melen100: ↑

Yeah, but the capital intensity is over $50,000/t. Every DLE faces the same issue, it's extremely expensive and the original studies have been proven to be wrong in the most advanced DLE companies, as well as the OPEX.

So LKE challenge is not the CR or water, or power. It's to get some entity that will take, 30-50% of Kachi to help fund the development of DLE to get the 1.3 bill as outlined needed in the DFS, which may or may not be the end game

Most miss this next point

DD was hired to deliver the DFS, he did that. He has stated what happens next depends on the market for this strategic investor and what they need.

They could abandon 2 trains of 12500 and do one, they could abandon the power CAPEX, they could go solar/diesel, they could abandon the expensive carbonate plant, they could sell LiCL, or they could say f me this DLE is just too expensive and quit

If none of these options are possible, it's probably game over, but I'm not convinced this is the case just yet

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When you benchmark the different processing routes to LCE, you gain a far better perspective about the associated cash costs to get to the same outcome…..Battery Grade Li2CO3.
The most important thing to note here is that Lake are proposing to mine AND refine…..and the “refine” part of the process is what incurs about 80% of the 1.3B CAPEX.
Compare the cash costs of a DLE based route to that of both Spodumene and Lepidolite based routes and you get a much clearer picture of the relative costs involved…..and that is on a purely cost basis - not to mention the benefits of not being refined in China when looking to supply Western OEM’s and Battery Manufacturers.

LKE Price at posting: 6.9¢ Sentiment: Hold Disclosure: Held
5 Upvote

3 Great analysis

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