Yes i read the MorningStar Research article you mention, however i must admit i take all there comments with a pinch of salt !
If Greenbushes the highest hard rock grade lithium mine in Australia can make a profit per last quarter ASX announcement i don't believe WES Mt Holland will for WES.
Whilst IMO i believe the new Trump Admin and other issues will make Australia lithium production to expensive and costly some of the other issues don't support WES Mt Holland lithium either;
1. Trump / Musk : will create increased lithium demand in USA through production in USA.
2. China will seek to dump cheap Li cars into Australia.
3. Countries making Li from brine have a far better production cost curve.
4. New technology - Lithium Sodium Ion and Zinc Ion batteries have more power storage/charge quicker and are not prone to flammability as like Li and are cheaper to produce.
5. China has the capacity to turn off and on Li production at its discretion, no need for Australian Li.
In general i believe the Australian Li market will either decrease or die much like the Australian nickel market which might ? recover in 10+ years - may be ???
All said i believe the only way for WES to recover its investment (purchase price / development) costs is to develop the Mt Holland gold interests which WES own from Kidman Resources 100% at about 1.2 million ounces of gold. Otherwise the Mt Holland Li project will be written off by WES much like IGO purchase of nickel business has been done. All this will have a huge drain on WES financial capacity and dividends to shareholders of WES.
GOLD GOLD GOLD GOLD GOLD GOLD
WES Price at posting:
$70.66 Sentiment: None Disclosure: Not Held
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