In the coming days / weeks/ months, whatever it may be, President Joe Biden will announce a multi trillion dollar investment in electrical vehicles ( EV ) as that was the suggestion he made prior to becoming president, completing the final piece of the puzzle that confirms the imminent decline of fossil fuels and replaced by EVs.
You may or may not be aware that most asian nations, europe and now the US, will be phasing out combustible engines post 2030/5 ? which is fantastic news for folks wishing to save and passing on a cleaner planet for our future generation of children.
There is going to be a massive demand for lithium to ensure that this dream is realised, so this thread was designed to put the blow torch on all the relevant coys in the lithium sector that could fill this demand and their capabilities to thrive and survive the various cycles of the sector as it matures, and becomes more competive, in size of mine, grade and cost.
I believe the term............TIER 1 ASSET gets loosely descibed with coys in the lithium sector, so lets dicuss what that exactly means. ........................................................................................................................................................................................................................ a ) TIER 1 Asset, it measures the value of the company , the mine is a " company maker ", measured in SIZE, LOM, GRADE, COST
Based on a long term commodity price ( mean ), the company should be able to do this.
a) Generates $ 300 - 600m P/A
b)The mine has multiple avenues to expand
c)It sits in the LOWEST COST quartile
d) Achieves an IRR > 12% in low juristiction areas
e)The mine gets built irrespective of the business cycle
Examples of TIER 1 Asset being............Olympic dam, Brokin Hill, Cadia East ............................................................................................................................................................................................................................
b ) TIER 2 ASSET.........Not as LARGE, LOM, or LOW COST as TIER 1, it only meets some of the criteria.
It is considered very profitable EXCEPT the BOTTOM of the business cycle
Here is a graph of all the lithium companies that could fill the massive demand for lithium to charge up the EV revolution.
I will only be reviewing ASX listed coys initially as I know most of them and have traded / invested with most over the time and stil do, there are a few exciting coys that are not on that list that I will review too, like, ASN, LKE, AGY, GLN etc and will discuss the PROs & CONs of each coy with the of TIER 1, TIER 2 ASSET in mind.
I will provide a snap shot of the relevant coy details via the official announcements to confirm the facts, then provide my PRO & CON summary and I invite all posters to have their say.
Please note, this is not a trash can excercise, please try and provide links to assist with your argument with relevant coys, thankyou.
The first 2 coys on review will be AVZ, the largest global deposit, v LTR, the fourth largest global deposit, based on that chart above.
This will be available by the end of the weekend or early next week, just doing final preparations, so watch this space,
By all means have a discussion in the meantime, it would be interesting to get posters take.
