The requirement for beefed-up salt removal plant infrastructure whacked up the CAPEX and OPEX but on the other side of the coin it will provide advantages on the brine processing side by being an additional value-adding step in the BG LCE development process. They are also considering options to lower the overall energy costs.
Given WorleyParsons have used the lastest cost data in the DFS calcs, the Maricunga project should be nicely placed in the bottom quartile of the lithium cost curve by the time production starts AND when royalties are included, LPI will be the lowest-cost producer in Chile in front of Albemarle and SQM.
Something interesting is brewing on the WA front - pure speculation but could it be a JV with SQM?
Patience required. Onwards and upwards. Bloody good times ahead.
LPI Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held