Great review. agree 99%. Only thing I don't is the SP should...

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29/05/17

13:43

Post #: 24968928
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Originally posted by Danzas ↑

This is the news I've been eagerly awaiting and I'm really pleased to see that they're able to produce both high grade Petalite concentrate grades with low Fe (iron) content (which we knew) as well as 99.97% battery grade lithium carbonate. Noting that this sells for as much as $20-30k/tonne of LiCO3... DKO has all the elements to make a successful lithium producer and supplier.

I hold another lithium stock which had all the right fundamentals but the SP did not move for a long time until the company started talking about offtakes and fast-tracking production. Once DKO has the scoping study completed, which I'm sure will be positive... they can start talking about marketing and locking in supply contracts... if they can get some MOUs with European battery manufacturers and provide details of production capacity... then the SP will re-rate. At this stage whilst this is positive news, it's unknown how much DKO will be able to produce with a 10Mt resource... The difference between DKO and the rest of the ASX lithium hard-rock pack is that DKO will aim to produce and sell Lithium Carbonate.

If the Directors do read this then perhaps some exploration targets would be great. Is Sepeda expected to grow by 5Mt, 10Mt or more? Are the Swedish Lithium tenements anticipated to be explored in the recent future? Sweden will have to be a standalone project, so DKO will need to prove up an economical resource there for this to add value. Given the proximity to Germany, it might prove to be a great acquisition.

Let's see where this takes us. The news is good, however the market will need offtake deals before there will be any real interest that sees DKO rerated.

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Great review. agree 99%. Only thing I don't is the SP should already be pushing at least 8-9c on this result/recent drilling and the JORC.

"they can start talking about marketing and locking in supply contracts"

I understand that Dudley is already on the job given remarks by CEO...re: door opener.

Management have incentives to reach 15MT and 30MT

Last edited by Sector: 29/05/17

DKO Price at posting: 5.8¢ Sentiment: Buy Disclosure: Held
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Great review. agree 99%. Only thing I don't is the SP should...

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