a 50/50 integrated JV (Adina + Renard + say Becancour conversion plant) would make a lot of sense, in particular the protection WR1 would receive from volatile margins for SC. But my assumption is that this would be unappealing to WR1 because they'd then have to deal with 50% of the capex for a conversion plant, which might be 500-700m USD for just 20-30ktpa LiOH or Li2CO3.
Adina's DMS-only processing (even without the Renard deal) will have lower capital intensity than a conversion plant, and could scale production faster. Adina will likely be big enough to support greater than 2.6mtpa feed, and if Renard was to be expanded to 3.6mtpa that'd be enough SC for 60ktpa chemicals. So the danger is that the upstream partner (WR1) ends up giving away too much in a 50/50 integrated deal. It would need to be a pretty sweet deal for me to support this approach.
a 50/50 integrated JV (Adina + Renard + say Becancour conversion...
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Last
$1.26 |
Change
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Mkt cap ! $239.4M | |||
| Open | High | Low | Value | Volume |
| $1.25 | $1.29 | $1.24 | $751.6K | 600.9K |
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| Price($) | Vol. | No. |
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| $1.26 | 3997 | 1 |
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| Last trade - 16.10pm 14/05/2024 (20 minute delay) ? |
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Last
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Change
0.005 ( 0.59 %) |
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| Open | High | Low | Volume | ||
| $1.27 | $1.28 | $1.24 | 117087 | ||
| Last updated 15.59pm 14/05/2024 ? | |||||
| WR1 (ASX) Chart |