Good summary dyeman. They have deliberately developed a wide...

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niu

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24/09/17

21:30

Post #: 27425823
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Originally posted by dyeman ↑

My understanding from ORE presentations is that rectification/upgrades to the purification circuit have been made that are expected to allow it to reach nameplate (the primary circuit has already demonstrated that it can exceed nameplate). As you are no doubt aware from reading recent company reports, ORE discovered that the algorithms used to manage balancing of the ponds were found not to be optimum and the ponds are currently undergoing rebalancing with amended algorithms and upgraded pumping equipment.

So the output of the purification circuit is currently limited by the available feedstock from the ponds and corresponding production from the primary circuit, rather than by the purification circuit itself. As the ponds rebalance, and evaporation increases during spring and summer, the company has stated that it expects that the plant (including purification circuit) will be able to deliver nameplate volumes of battery grade Lithium Carbonate. This does not necessarily mean that they will only produce battery grade - there is also a market for industrial grade, and while the market price is less, so are production costs.

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Good summary dyeman.

They have deliberately developed a wide spread of customers and with that demand for both battery and industrial grades. Further to that we know that some of that industrial grade is being processed in to hydroxide by third parties (ie battery production is the ultimate market for some of the industrial grade).

And yes, production costs differ for the grades to the extent that the profit margins are probably not much different at this time (that may change as the output increases and the process is further optimised)

Back end of this year will be interesting

ORE Price at posting: $4.40 Sentiment: Buy Disclosure: Held
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0 Great analysis

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