https://www.youtube.com/watch?v=QWhetWyJm9I
TAW strong BUY from this analyst on SkyBus news
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https://www.youtube.com/watch?v=QWhetWyJm9I
TAW strong BUY from this analyst on SkyBus news
For those with an eye on the future direction of the Lithium/battery boom, while NMT has gone from 30c - and touched 50c recently, this coming quarter should contain at least 1 major update to the market on their various downstream projects.
https://stocknessmonster.com/news/nmt.asx/
Key point - They have secured their own future supply of lithium spodumene for their higher margin downstream projects.
Nice read for the weekend...
Great story TAW is building such a smart MD ..I would not be surprised to see TAW command 1.50 SP later in the new year
Attachment 9356
Have to agree with you JB, the way the management have got this up and running and the speed at which they have done it is amazing.
Mark Calderwood is worth is weight in 'Lithium'
And there is still so much more drilling to do, Mark mentioned they could be doing it for years so the resource is only going to get bigger
one of the best lithium plays
I know a little bit about chemical companies .LYC,ORE for example .But not too much about spodemene rock deposits though I did look at them some time ago before deciding to go with brine recovery company (ORE).LI20 at .5% cut off grade seems quite low. The tantalum peroxide looks interesting. Inherently in the processing with any chemical product startup there tends to be glitches to get to nameplate.The composition of the base material can make a big difference to costs of processing (mica in the material is bad)
https://www.thebalance.com/lithium-production-2340123
https://www.linkedin.com/pulse/how-w...ichael-langfor
Generally looks ok to me ATS but until everything is up and running who knows.Its good they have guaranteed off take provided they can keep costs down
Ditto on the nkp taw swap
I've made my thoughts pretty clear on this subject in the past. The LCE market is not a market but a cartel run by the few downstream battery grade lithium producers. The market for spodumene is opaque and governed by off-take agreements which are linked to the market price of LCE (a very small market in terms of value and tonnages with no spot or secondary futures markets). As the volume of lithium battery sales increase, their prices will fall and so will the price of the raw LCE product. The downstream cartels will still make money as although the price of batteries will fall, the volume of sales will increase, however the spodumene producers whose contract prices are tied to the price of LCE will have their margins squeezed not only by the falling LCE price but also by competition for new spodumene production coming on stream.
Look who is at the helm of a company like PLS. The same guy who steered one of the flash in the pan iron ore miners during the iron price spike days. I've even noticed he is doing deals with his old company to transport DSO LiO2 ore. What's the grade of this stuff (around 1.5%). You are frigging transporting 98.5% waste to China. Not sustainable and I doubt that it will be profitable over any significant time scale. Just more flash in the pan stuff to keep the news flow going and lithium bubble inflated. The cartels love that us silly Australians have capitalised their industry with our speculative money. In the end it will go the same way as the flash in the pan iron ore companies and WA magnetite mines (ie equity investors burnt once again and the inexperienced will buy the top and hold all the way down like they always do). I remember the $1.80 GBG days. Reminds me of the current period with the lithium stocks, investors investing based on unproven blue sky and greed.
God help those invested in the African lithium plays. Remember the hype around Simandou and companies like SDL. Even the successful African iron ore plays from 2010/2011 are all washed up now. But who am I to talk. There are any number of new "experts" who think making money on a bubble (short term boom) is equivalent to knowing something about commodity markets or investing. It's not investment it is pure speculation not unlike the crypto currencies although lithium has more utility. Esh
Those comments are very educational... understanding behaviour is almost as important as understanding the fundamentals of the company.
Any juniors you guys following at the moment?
The only lithium stock I hold is a junior called Lithium Americas (http://lithiumamericas.com/) which is in the process of listing on the NYSE. Currently only OTC. In this instance I followed the money (which is Chinese) and got in early which gave me a nice return so far.
Do we need Lithium powered stocks in the 2018 ASX competition closing very soon sunday?
This may well end the chances of any junior lithium stock that is not already producing without offtake agreements
https://investingnews.com/daily/reso...on-deal-corfo/
depends who you listen to - media or industry insiders
https://twitter.com/AlexMiningGuy/st...54919866417152
Too True this lifted from HC unsure of its origin
A lithium reality check
With global production expanding, will lithium keeping charging?
Summary: SQM, the world’s biggest lithium producer, is set to ramp up output from its operations in Chile. The news has hit the share prices of Australian and other global producers.
Key take-out: Investors in the lithium space will need to watch developments closely, but don’t expect overnight supply changes.
A sell-off in lithium stocks last week was not the end of the boom in battery metals. Rather, it was an overdue correction to an overheated market, which still has a long way to run.
The immediate cause of an almost uniform 10 per cent fall in most lithium-exposed explorers and miners was approval for SQM, the world’s biggest lithium producer, to expand production in Chile.
If SQM was able to quickly produce an extra 70,000 tons of lithium carbonate a year then there might be a genuine reason for concern about the price of the material. Lithium is the basic building block for long-life batteries used in electric cars, tools, and for storing renewable energy.
But, because SQM produces its lithium at a dry salt lake (Salar de Atacama) high in the Andes mountains, the additional material is unlikely to reach the market for at least five years. That’s because it will take that long to finalise planning, approvals, financing and construction.
There are three other reasons to see the SQM expansion approval as a reason for investors to remain interested in lithium:
Electric car demand is accelerating, thanks to a combination of consumer interest, government incentives and falling production costs.
SQM’s expansion had been delayed by political factors in Chile, and with the election of a pro-business president last month the way was cleared. This fact was missed by most investment banks following the lithium sector.
The next phase of the lithium rush will be a more conventional process, because as supply and demand become more closely synchronized the key measures of success will not be tonnes produced but costs and quality.Uncertainty about what happened in Chile last week has led to conflicting advice, with some investment banks seeing it as a major negative event. Others see it as a non-event, because it either
The negatives and positives
Introduces “significant lithium price downside risk” (Morgan Stanley), or
Does not “threaten near-term lithium market conditions” (UBS).Leading Australian lithium producers Orocobre, after an 11 per cent plunge from $7.18 to a low of $6.36 last Friday, and Galaxy Resources, which fell by 10.7 per cent from $3.82 to $3.41, have both reclaimed lost ground. Pilbara Minerals, which is scheduled to start production later this year, lost 8 per cent with a fall from $1 to 92c, has also stabilised.The starting point to understanding what happened last week is to take a deep dive into the politics of Chile, all the way back to the military dictatorship of Augusto Pinochet of the 1970s and 80s, a time which deeply divided the South American country.Those historical connections mean that SQM struggles when Chile is led by a socialist government, but blossoms when the government takes a right turn, which is what happened last month with the election of Sebastian Pinera – another Chilean billionaire.A looming price squeezeThe only answer at this stage is a tentative yes, there will be room, but only for producers able to survive at prices that are likely to be lower for longer.Lithium, in its carbonate form, had rushed up from $US4000 a tonne as recently as 2014 to peak last year at $US20,000/t, before starting to ease as new supply reached the market dominated by Asian battery makers.The impact of SQMWarning that the lithium price could fall faster than it had previously predicted, Morgan Stanley said a bottom of $US8000/t expected in 2022 could now occur in 2020.“We don’t believe the SQM deal leads to over-capacity,” UBS said. “By the time SQM lifts output by two, three, or four-times, lithium demand will be growing dramatically to absorb new supply.Morgan Stanley, with its less optimistic view of the SQM deal, noted that even as the Chilean company reclaimed its traditional role as the global lithium price setter, it was unlikely to destabilise the market. The bank said that in the past, SQM had behaved: “as a disciplined leader, keeping lithium and iodine prices around the marginal cost of production”.
In effect, SQM’s new material will be needed by battery makers, though for Australian investors the most important factor will be to focus on lithium producers able to keep their costs under control – which is precisely the same for all companies exposed to the commodity cycle.
“Factoring in a five-year ramp-up for (an expansion) of between 50,000-to-70,000 tonnes a year, our initial view is that the new production might achieve nameplate (capacity) in 2022-23, exactly when the lithium supply/demand balance heads into large deficit as electric vehicle penetration rises strongly.”
UBS disagrees. It reckons SQM will only expand output modestly, despite receiving permission for a massive increase in output.
Morgan Stanley, the most worried of the investment banks, said it expected SQM to “aggressively recover market share” lost to new producers such as Australia’s Orocobre, which operates in South America, and the US-based Albemarle, which operates the big Greenbushes mine in Australia with China’s Tianqi.
Over time, the lithium price is likely to follow a similar path to that of iron ore, sliding to a forecast of around $US8000/t – less than half the peak, but double what it was before the boom.
What’s happening in lithium is a rerun of what happened in iron ore, which enjoyed a spectacular rise to more than $US180 a tonne when Chinese demand exceeded supply. It then plunged to $US40/t before recovering, but only after high-cost mines were squeezed out.
The question which investors in lithium stocks should consider is whether there is room in the global lithium market for SQM’s expanded output, because other producers are also boosting production to ride the electric car revolution.
The change of government coincides with the end of a dispute between SQM and Corfo, the development agency of the Chilean Government, probably thanks to a political directive. But Chile’s slow reaction to sharply higher lithium prices has permitted other countries to snatch a slice of the market, especially Australia’s hard-rock miners.
SQM, which has the full name of Socieded Quimica y Minera de Chile, was (and remains) a major producer of lithium and other materials such as iodine and potassium. Its biggest shareholder, in the process of selling its 32 per cent stake, is the Canadian company Potash Corporation. But effective control has remained with Julio Ponce, a billionaire who is also the former son-in-law of General Pinochet.
The politics of lithium
Investors, after the shock of the SQM expansion clearance, have crept back into the Australian lithium sector.
Hope everyone on here has sold their EMH European Metals Holding shares over the last few months. This ship is gonna tank today. Happy to have sold months ago.
https://twitter.com/ResourcesTawana
First oz lithium producer since 2016
http://spcagent.co/tawana/wp-content...3/01964434.pdf
Interesting to see this, I am relatively new to investing, be keen to understand or hear anyones views on this? My interpretation they are just relocating assets towards the proven mining area from less proven areas?
Looks like they are going to do a merger with their joint venture partner and tawana are spinning out their other tenements in order to make the merger more even.
That's my take on it anyway. See what happens
There is also talk that they could be spinning out the other tenements so they don't loose them if there is a takeover by another company (Chinese no doubt). Apparently the vultures are circling
http://spcagent.co/tawana/wp-content...03/1786495.pdf
Just released this morning. Achieving ahead of nameplate targets only 2 weeks in, and 7.03% grade seems to be pretty good, hoping to see this recognised when ASX opens.