Originally posted by yanlin
Like you, clivemax, I have time for some Saturday morning musings - following my pilates class and a couple of strong coffees.
My thoughts wandered to seemingly unrelated events that, ultimately could be related.
I remember last year when a shipment of some 3,000t of 6% spod found its way to POSCO from Mt Cattlin.
I also am curious as to why we have not had a delivery of spod from Mt Cattlin to another customer following completion of our 2018 shipment obligations. We are still producing at Mt Cattlin and we've been told we are seeing the benefits of the YOP, so why haven't we sold any spod since last year?
And, as we all know, we have been awaiting the finalisation of the SDV north sale transaction and the SDV (south) JV announcement.
All of these things, whilst seemingly unrelated, most probably are related.
We now expect confirmation of the transfer deeds for the Salta tenements to have been signed by the judge and the funds sitting in the HSBC escrow account to be transferred to GXY. This final condition precedent seems to be the event that will link all of the above together.
Here's what I think will happen now:
* Money arrives in the bank account and to be committed to a future POSCO/GXY jv
* POSCO formalise their binding offer for a JV at SDV involving 2 parallel developments - 25k t p.a. conventional brine pond operation and an adjoining (remember SDV is huge) 25k p.a. POSLix plant.
* POSCO take the entire 2019 supply from Mt Cattlin (minimum 200k t for CY 2019) for lithium hydroxide production in South Korea
* POSCO/ GXY investigate a Li chemical JV facility in WA for future Mt Cattlin production which needs to be a minimum of 240k t p.a. of spod in order to produce circa 10k t p.a. of LCE
The beauty of all this is that GXY will be the only oz Li producer that will be integrated across the whole Li extraction/ chemical production cycle and TOTALLY DEBT FREE.
This weekend's POSCO Board meeting is the final hurdle - hence the trading halt.
This is all in my humble opinion and does involve some wishful thinking. But, hey, it could happen!!!
I think GXY is stockpiling at MC for hydroxide conversion
not advice
(“Company”
