Hi All,
WHAT ARE THE FACTS ?
Hard Rock vs the Brine - the problem is we can not separate out the Li component for ALB, SQM and FMC....
(2015 results below) - as
@ozblue has been telling you lithium is a tiny part of their operations and is not profitable in isolation....
this is true !
The “world’s biggest lithium producer” SQM is actually the poorest performer of the bunch having lost nearly
-50% in the past year. A key reason for this is that lithium only contributes
11% of revenues for SQM so the actual exposure you get to lithium is very small. For FMC the exposure is even worse. Lithium sales contributed just
6% to FMC’s revenues. ALB fares slightly better with lithium contributing
13.6% to total revenues.
Additionally, not all lithium is created equal.....
But ... GXY did a detailed feasibility study....
GXY Sal de Vida
Average operating costs USD 2,200/tonne (net of potash credits) .... net of potash credits.... so what are the potash credits? - The SDV site is considered world class and the best !
see:
https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=12&cad=rja&uact=8&ved=0ahUKEwi5ycaTx5DNAhWB2qYKHaRNAJg4ChAWCCYwAQ&url=http://hotcopper.com.au/documentdownload?id=tuE7JrfFgm%2FOGe3mZXuTCW%2F2G0Jc6ly5zQ3y2dYNkqsqGrjSEI8dDApjaRzyyFVK3m1%2BOdlMepCrot3OBYw1yeEjZA%3D%3D&usg=AFQjCNFeilbjIrU2iybYnEh6RNai_KP5NA&sig2=XPCL4sOAgqc71rcNKP0cYA&bvm=bv.123664746,d.dGY
- From the report Page 4 of 9 - Potash production 95,000 tpa / The price of potash in 2013 was approximately 400 / ton.
The expectation in 2013 was that the potash price was going to keep going up - so my 1 assumption in all of this is that the Feasibility reported used 400/t.
= USD 38 million per annum in "potash credits"
- From the report Page 4 of 9 - 25,000 tpa of Lithium Carbonate Production so to spread the USD 38 million over 25,000 tpa of Lithium carbonate is
38,000,000/25,000 = 1,520 / ton
SO THE REAL EXPECTED BRINE COST GXY NUMBERS OF PRODUCTION IS USD 3,720 / t (2,200/t + 1,520/t)
PLS USD 200/t PRODUCTION COST is USD 2,333 / t to USD 2,666 /t FOR GXY EQUIVALENT...
More than 1,000 / ton CHEAPER !!!!!!!
BRINE PRODUCERS IN LATIN AMERICA ARE NOT PRODUCING AT USD 2,500 to 3,000 the CITI Guys & Girls CAN NOT DO MATHS !!!!!
... apologies for the caps...
Ohh.. that Macquarie Bank - maybe they were cheating from Citi's maths answers... if you use Macquarie Bank in any capacity I recommend changing to a new bank.
Best of luck to those that believe in Brine. It is not true.
Then the issues with commissioning - check ORE.ASX - 2 year ramp up.....
Good luck to anyone not in PLS.... as we do not need it. We just need this misinformation to end and our shareholders to know the facts.
Cheers,
Super Ninja
