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08/04/24

17:00

Post #: 73244008
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Originally posted by InItEarly: ↑

Yeah, I recon we will partner with POSCO. I am sure there are others, and that there was some Canadian government mention of Japanese strategics at one point. But POSCO keeps coming up.

I think we rocket on a strategic offtake partner.

You can see where CE is going with this - securing a long-term agreement to sell spod con from Renard at say US$2000 per tonne (within the long-term sustainable price suggested by CE - who has already been engaging with these strategics) has plenty of appeal.

It gives Winsome (and any other companies than want to help feed our Renard plant, - a plant than can keep expanding in capacity from 2.2mtpa up to 2.5mtpa, and then beyond the 3.3mtpa that was planned by Stornoway) a high degree of price stability to secure any residual finance it needs to finish production (while also being rudely profitable at Adina/Renard's very low operating costs and AISC).

Winsome can get on the job of construction - with one more significant development risk, all but completely derisked.

For the strategic, now that Renard brings us in as a very credible future producer, the certainty that they will be able to secure the supply they need when the squeeze comes. And great confidence for a strategic to make significant investments in conversion and manufacturing downstream in Bécancour, ready for when Winsome starts feeding them the spod con.

The downstream activity stays in Canada, which is good for Canada and pretty damn good for Winsome's social license (it is hard to imagine the government not chipping in for the roads required or providing other support, given the economic impact of helping Winsome get to production as soon as is practicable).

The Cree secure back the economic activity from constructing the roads and any other infrastructure we need, while also securing job at both Adina and Renard. And they get the roads they have long sought.

Any other companies that do get a deposit up in the area, may be able to benefit from all of these arrangements too. More ore into Renard, affords Winsome other opportunities to leverage scale to set up in a manner that keeps costs low.

Anyone got any more thoughts on what other strategics might be viable from this Japan/Korean trip next week?

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Good post InitEarly, the "local" refiners/manufacturers will be looking for product around 2025/2026, I think there is every chance we could have product ready to sell around this time. The first movers get the spoils they achieve the dominant position and get to dictate terms with all other possible producers, WR1 are now the first mover.

WR1 Price at posting: $1.22 Sentiment: Hold Disclosure: Held
14 Upvote

0 Great analysis

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