LKE towards TOP-5, page-22683

I'm not sure that its all about sustainability. Use VUL as a reference point.

VUL chart with DFS/CR highlighted.

VUL is also brine (thermal) and is using DLE. VUL's DFS update led to a CAPEX blowup of $39.5k pt. They then followed the DFS announcement in Feb, with a CR in May (approx 3 months later) for a discount of 15%. Price has since dropped a further 25% from the discounted CR price. All up, the price has dropped circa 45% since the DFS was announced



OPEX is still relatively low. IMO, companies are being punished for large blowouts in CAPEX.

ASN also has a CAPEX of $39k pt.

So that is 2x DLE projects that will require massive CAPEX expenditures.

You could argue that the CAPEX for VUL is high because it is in Europe, and for ASN because it is in USA, however it is not the only reason.

LKE also have the mitigating factor of isolation to contend with. There is no infrastructure, and the closest city in Arg is Salta which is 8.5hrs away by road. So the logistics of getting plant to site will be a significant factor.

Then there is the whole "no power" issue.