I'm inclined to agree with this rationale and yet again you've done a superb job of laying some of the possibilities out, particularly the primacy of point 1 as it would allow us to exploit the superb market conditions to get at least something to market in the here and now, opening up some serious cashflow for us, even if we are unable to sell the 6% Spodumene we've been banking on producing and selling as our main product.
The sooner we're at market under these conditions, the sooner we're rich and have stupid amounts of financial resources to finally begin exploiting Finniss, the Gold, Barrow Creek, the doubling of production for 60 million and a potential Hydroxide Plant down payment.
It would as you've pointed out also free us up from our contracts a lot sooner as well, which particularly if the market is strong and we do end up going down the hydroxide plant pathway will be very much to our favour and put even more serious big money in our pockets sooner and free's us of any contractual obligations to supply just Spodumene.
There is also the other major advantage that I'm kind of surprised nobody has mentioned so far and its the reason why we literally can just DMS gravity seperate our product versus other competitors.
That advantage is the extremely favourable local geological composition of our rock. Particularly compared to other Hard rock producers in Australia because ours is particularly low in iron and other elemental adulterants which chemical producers and Hard rock producers in WA have to seperate from before their product is ready for shipping. You need only look at previous releases from years back to see that we got extremely lucky on the Geography front but also the Geological composition front and this could prove to be a key difference in the crucial first few months of gear and circuit calibration etc producing a value added product especially when our rock is described as having some spodumene crystals "as long as your forearm" in it.
I know this quote will probably jog a few LT holders memories.
This same advantage also probably means the time between basic ore and SC6 perfection also means they really were serious about SC6 being our product of choice in early 2023 at the latest.
This makes me a very happy Kiwi indeed
CXO Price at posting:
$1.60 Sentiment: Buy Disclosure: Held
(20min delay)