I'm going to have a vent.
The definition of "off spec" product is product that "does not meet the specified or standard requirements." For example, some off spec oil based products are burnt to recover thermal energy because they cannot be used for the purpose they were designed for. If ORE is selling industrial grade LiCO3 then who has decided that this is suddenly 'off-spec' product?
If it was produced and shipped as battery grade but upon arrival didn't meet the specification then I would consider it as 'off spec' product.
If it was produced as industrial grade, say from the primary circuit, and the company was getting between $7.5 to $11 K for it, then I would consider it 'industrial grade' not 'off spec'. And how is this a major problem, putting the company at risk? Current operating cash cost is US$3,579/tonne (see last company presentation), which means a cash margin of $3.9 to $7.4 K per tonne USD ($5.4 to $10.3 K per tonne margin AUD). I'm sure there are a lot of Australian mining companies out there that would be very happy to be producing such valuable 'off spec' material.
- Forums
- ASX - By Stock
- Off-spec product
I'm going to have a vent. The definition of "off spec" product...
-
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)