I guess the cost effectiveness derives from the infrastructure already being in place. MGX's technology is modular, it is added to the current extraction system. Also, the company has gobbled up over half a million hectares of abandoned oil and gas wells in Alberta alone (oil and gas capital of Canada) that have shown high levels of lithium in the brine, no need to actually produce oil (the filtration system they use also removed 99% of solid matter, stripping this, and many other elements, including lithium, they have made 'waste' water refusal for steam injection, or possible release back into nature, a huge savings for oil and gas).
My worry is with such low overhead by using existing infrastructure, and cost savings over storing waste water, they have effectively sidestepped the start up costs of hard rock and evaporation mines. Factor in the production time (18 months vs 1 day), they can potentially undercut current lithium prices.
They also plan on being in commerical production this summer....
GXY Price at posting:
59.5¢ Sentiment: Hold Disclosure: Held
