Originally posted by Kaeho
Great post onspeedclear.png
Just doing bit of DYOR before making a final investment decision.
Notice you said:
""CCHEN” permit granted in the beginning of March this year for a period of 30 years over the company’s old coded mining concessions"
I found:
"the country’s nuclear commission CChen granted Salar Blanco a permit to extract approximately 473,135 tonnes of lithium carbonate over 30 years."
Did u miss the cap they have on production? Does this mean LPI only gets 51% of 473,135 tonnes over 30 years?
Hi Kaeho, it will depend on LPI’s final equity in the MSB JV. Right now it is 50% going to a 51% controlling stake. They have first option if the second biggest stake holder wants to sell. But lets work on 51% for now. Old code extraction of 15,800t/pa with cost of US$3,000 p/t at a sell price of US$16,000 puts it around US$204m/pa EBITDA+Royalties. 51% goes to LPI tells me it is a nice little earner from old code. Litio will be cream on top. Even with the License and EIA granted for Litio we will be capping ourselves with a 20ktpa plant anyway.
The key here for me is sustainability with low Opex and likely hood the project will simply be acquired by a major group for a quick ROI