"I think Tianqi currently ships its’ (and IGO’s) share off to...

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MakeMineAMid

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03/12/21

12:04

Post #: 58049520
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Originally posted by sabine: ↑

I thought the company’s diversification was one of its’ key attractants KBB?
And achieving it seems to have been a key IGO focus since at least 2015 when the first Sustainability Report was published [ref].

Whatever else is going on with the market I think perhaps it does not viewGreenbushes as an exciting young mine with multiple unknowns in front like many of the more junior entrants to the sector.

There is also the fact that IGO is probably not able to achieve exciting benefits from soaring lithium prices as I think all spodumene from Greenbushes goes to Talison which then divvies it up between owners Albemarle and Tianqi at whatever price it chooses.
Obviously IGO now gets a cut of that but I think Tianqi currently ships its’ (and IGO’s) share off to its own processors in China who pay whatever Tianqi wants then take value from the resulting Chinese hydroxide in which IGO has no interest.

Leading on from this, FWIW, I think the real benefit will come to IGO once the Kwinana Processing Plant (in which it does have a large interest -49% ) starts to produce.
.. Which is why I think it will be keen to see Train Two funded and on the way ASAP next year.

……… Which may be a reason it is keen to get WSA or whatever else sorted soon?

cheers

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"I think Tianqi currently ships its’ (and IGO’s) share off to its own processors in China who pay whatever Tianqi wants then take value from the resulting Chinese hydroxide in which IGO has no interest."

I find that hard to believe, that IGO would have bought into this type of arrangement. Surely IGO would have ensured a market rate had to be applied in this circumstance.

IGO Price at posting: $10.15 Sentiment: Hold Disclosure: Held
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0 Great analysis

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