Sumitomo plan to produce more cathodes, some of which already go to Panasonic which then go to Tesla.
Mirsubishi plans a bunch of EVs.
Mitsui plans to produce more nickel etc.
The first two notes are easy to research. I’m having trouble finding the third again to provide a link but have seen it in a release from them. Those that truly matter ( the institutions ), should have that noted somewhere.
For my fellow retailers here is a taste with a release that’s easier to find-
https://www.mitsui.com/au/en/business/1216605_9180.htmlSee paragraph 4, titled ‘Expanding our investments in the metals industry’.
I believe it is worthwhile to remember that the consortium mines, buys and sells much more than just nickel. Of course there is the cobalt. Then there are other minerals including aluminium. Ardea has the potential to produce more than nickel and cobalt.
Nickel prices are good for the consortium to do a deal with someone like Ardea at the moment. They didn’t become what they are- entities worth around a quarter of a trillion dollars US- by chasing the higher prices.
That is the reality of big business. Plan & investigate when prices are high, spend when prices are low.
I still believe that ARL will do well. That a partnership with the consortium would be very beneficial for both parties.
The extension to the agreement decision makes perfect sense to me as the bigger players move in quarters, years and decades. We released an updated tenement schedule after the initial MOU announcement. That’s why it makes sense for the consortium to have taken more time to study us as a proposition. We became a slightly larger & I believe more attractive proposition thanks to that.
https://ardearesources.com.au/downloads/announcements/arl_2023071701.pdf ( for those who hadn’t seen or considered what this meant ).
Lastly- money & alliances. Japan has a free trade agreement with the U.S. Japan and Australia are active allies of the U.S. The IRA isn’t only about ESG, which Australia and Japan both hold up well to, but is also about strategic alliances. As you rightly note, that means seeking to curtail China’s dominance in the commodities market. Therefore we do have multiple material and mineral advantages over Indonesia who fall short when it comes to ESG, Chinese ownership and active participation with the U.S. militarily ( both Japan and Oz host U.S. forces and bases ).
Then there’s the low cost of borrowing in Japan. Access to that would be a real boon for our projects.
Conclusion? The smart money comes out now & over the course of the next 1-18 months when prices are low. In other words a great time to do a DFS with Australia’s largest resource in preparation for production in 2027 & beyond ( which Sumitomo has already signalled as the timeframe for the aforementioned increase in cathode supply, gee- what a coincidence for them to say that in the months after signing the MOU with us! ).
(20min delay)
