AEV 0.00% 0.9¢ avenira limited

Seeing that the company has suddenly decided to go down the...

  1. 594 Posts.
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    Seeing that the company has suddenly decided to go down the route of LFP using their food grade Phosphoric Acid (A.K.A Super Phosphoric Acid), I thought how about crunching some numbers to see what kind of potential revenues could ensue if we went down the route of producing only food grade PA and exporting it. Well, here goes:
    Noting that SPA has a concentration of 69-76% Phosphoric Acid, the following revenues are possible.
    FOB pricing for SPA taken from here (I undserstand that the prices quoted are for 85% PA, so I've adjusted the conc to 85% in the table)

    https://hotcopper.com.au/data/attachments/4272/4272145-3185e376b3bcf7a16d4667529f46ab61.jpg

    Looks like we can bring in revenue of almost 950 million a year on phosphoric acid alone. Why on earth would be try to learn and trial a high technology product and push our revenue earning capability a few years later?

    Given that LFP is a product created from Lithium Hydroxide, Ferric compounds and SPA, wouldnt you want to make the SPA first, start selling it, create some nice stability around the operation and some FCF and ONLY THEN go in for the LFP.
    Are we putting the cart before the horse? I wonder....
 
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