Again.My understanding is very limited regards Lithium. Please,...

Again.

My understanding is very limited regards Lithium. Please, please correct me, so I can understand it better. Thanks.

The cost of producing Lithium from rock is much cheaper than Brine (We have both, Sandy is from rock & Lordsburg is Brine)


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From:
https://pages.marketintelligence.spglobal.com/lithium-sector-outlook-costs-and-margins-confirmation-CD.html

quote " In 2019, the average total cash cost across 11 operating hard-rock producers is expected to be US$2,540/t LCE, which compares with US$5,580/t LCE across nine brine operations".

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From:
https://www.fastmarkets.com/commodities/industrial-minerals/lithium-price-spotlight

Lithium Sell spot is around USD $6,300 per tonne

So almost a USD $3,700 per tonne profit from Sandy (rock type)
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Sandy has existing JORC for 320,800 tonnes of Li2CO33 So profit @ 320,800 x USD3,700 = USD 1,186,960,000

They estimate what the total area holds 271.1Mt to 483.15Mt (Above JORC isfrom 32.5 million tonnes (mt))

So roughly total of 7 to 15 times the existing.

So profit at:
at 7 times USD $8.3 Billion = AUD$11.25 Billion (Around $5 per share)
at 15 times USD $17.8 Billion = AUD $24 Billion (Around $12 per share)

I cannot be correct, those are crazy figures.