LKE towards TOP-5, page-364

First 364 Last

Share
Profile

Follow
dugsab

16,541 Posts.

2582

10/01/22

08:15

Post #: 58741750
Share

Originally posted by Suw: ↑

Lithium price will continue to increase in 2022 and we will see a new valuation for lithium companies, including LKE, by end February or early March.

We also need to understand, LKE to have a Tier-1 offtake partner, is part of 70% project funding requirement and it need not be for 100% of 25,500 or 51,000 expansion case. If one or two Tier-1 offtake partners agree for rise and fall price mechanism, then IMO long term contract price would be more than it’s PFS pricing and probably higher than $20,000.

It would be interesting to see how many big players (SQM, ALB) have signed rise and fall price mechanism with their offtake partners? I reckon none because it is a new trend and if LKE succeeds, it will be a significant benefit to LKE’s cash flow, future expansion of other projects and shareholders.

Further, there is no requirement to commit 100% production to offtake partners, if demand for lithium is to exceed supply. There will always be demand for battery or higher quality (99.97% purity) lithium and LKE could still possibly attract close to spot pricing on those uncommitted lithium supply in the open market. I am confident Steve and Stu must be working on best % mix of offtake vs uncommitted supply for LKE.

Expand

Got some Lilac pilot plant results to support your 99.97% carbonate purity claim?

Or even 99.95%…or even 99.5%?

I note we have Lilac bench test results of 99.5% purity for chloride only.

All other bragging rights belong to Hazen’s Lab production.

IMO DYOR

LKE Price at posting: 98.5¢ Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

Your questions From the Floor: Investment experts respond...

Guzman Y Gomez shot up nearly 40% in first hour of trades. Can it last?

EMD

Emyria's Empax Centre chosen for mental health clinical trial

BRX

Belararox delineates another porphyry in Argentina at Tambo South