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24 JULY, 2024SPECIAL FEATURESWRITTEN BY Angela East
Pan Asia Metals: Shaping the larger lithium picture
This article is a sponsored feature from Mining.com.au partner Pan Asia Metals. It is not financial advice.
The pieces are coming together for Pan Asia Metals (ASXAM) as the critical minerals explorer looks to advance a lithium project capable of withstanding the cyclical highs and lows.
Brine producers ‘making a killing’
Brine projects, meanwhile, can produce lithium carbonate at a much lower cost, which means they can generate strong returns at current prices.“In the current price environment of say US$13,000/t ($19,507), the brine leaders are making a killing, with gross margins well above 65% for the leading producers,” Lock says.
“The leading processors of lepidolite are also making very strong gross margins. Therefore, our view on price is a little different than most.”
Lock says in the current price environment the leaders will do well, and if the price moves into the US$20,000s then “all good and well”.