@luanboo
One point that should also be noticed is fact that our arrangements with BaoJiang are until 2022.
At present time we should be happy with current situation as it provided us with money to start operation, interest free loan and no repayment for the next 2 years.
Taking into account our current production, bottleneck in supplies, time to ramp up fines and the next stage (most likely early 2021) this agreement gives us a lifeline to keep going.
However, should we come closer to 2022 and if predictions of increase EV production as well as bigger demand for lithium, A40 could be in the top position to negotiate better price, walk away or put request to be included in downstream production.
Most Aussie hard rock miners are tied to long term supplies and I can't see many more new mines coming on stream in 2 years time.
I could be wrong, but IMO A40 board is not rushing anymore into long term agreement at the current market condition but trying to keep the boat going smooth until lithium demand turns around.
While we all are eager for more offtakes in hope of getting higher SP, our BOD could be looking more into the future and much bigger profits than we can imaging or calculating now.
We need to keep in mind that each of directors went thru number of booms and glooms in the mining career and we either trust them and hold to shares or sell and move on.
There was no much exploration done so far so I would not be excluding BH as a similar version of PLS or Mt Marion.
One dark horse here is Cowan which IMO is a A40 feeding storage for coming years.
A40 Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
