I listened to this and also found it very interesting and quite positive for PLL's position - not that I needed that as I think everything is aligning nicely for PLL.
This podcast that Skattie posted is produced by Howard Klein who also puts out a regular newsletter here: LiBull
This latest issue particularly references PLL. In it, he discusses some of the problems and difficulties of Brines, clays and sovereign risk, etc. and strongly believes that spodumene projects with upstream processing of lithium hydroxide is the way to go.
From his newsletter:
Over the past year, it has become consensus view that more long-term margin will be in lithiumcarbonate and hydroxide processing ($12-16kt long-term forecast), rather than spodumene mining(forecast price $500-750/t, ~8 tons spodumene for 1 ton LCE). Especially for hydroxide. This is whysizable, integrated hydroxide plants are being built in Western Australia and why Albemarle, the biggestlithium producer in the world, is writing a $1.15B + $800M check for 50% investment with MineralResources’ Wodgina project in the Pilbara. 45% EBITDA margins, according to ALB. 50-100kt for 30+years. Long-term. Sustainable. Security of Supply.And why I believe Quebec and North Carolina hard rocks will develop significantly. Albemarle hasdescribed their past producing King’s Mountain mine as second highest grade in the world afterGreenbushes in Western Australia. USGS and their consultants have estimated the North Carolina TinSpodumene Belt to have similar potential tonnage as in Manono in DRC (excerpts below).---A lithium sweet spot is integrated spodumene-to-hydroxide projects that can meet a threshold of20,000 tons for 20 years and ~$400-$500M capex ($100-150M mine/concentrator, $300-350Mhydroxide plant). Additionally, it is likely that new hydroxide processing plants outside ChinAustralia willdevelop to process spodumene ores from other geographies (eg, South America, Europe). This is theBeauty Piedmont Lithium thesis..................As far as economic theory goes, PPP is highly relevant for lithium. North Carolina, USA = 40 years ProvenPegmatite Production. And, like almost any cost in USA vs. other geographies outside China, lower coston a USD and Purchasing Power Parity basis.Piedmont’s $50M market cap = ~5% the $888M NPV laid out in its greatly detailed and credible ScopingStudy for an integrated spodumene-to-22.7kta hydroxide project. (Not Advice. DYOR. Read Disclaimer)Piedmont raised AUD12M in December for a significant drill campaign aimed at expanding mine life.Lithium, as everyone seems to know, is not rare. Judge for yourself the likelihood of exploration success.
more....................
Here is a link to the US Senate hearing on minerals: US Senate Hearing on Minerals. and an excerpt from it:
“In contrast to the energy sector, our nation is headed in the wrong direction on mineral imports. This is our Achilles’ heel that serves to empower and enrich other nations, while costing us jobs and international competitiveness,” Murkowski said. “Over the past several years, our committee has sought to call attention to our reliance on foreign nations for minerals. The administration has taken several important steps, but we must complement their actions with congressional legislation.”In 2017, the U.S. imported 50 percent of 50 mineral commodities, including 100 percent of 21 minerals. Simon Moores, managing director of Benchmark Mineral Intelligence, called attention to the global uptick in mineral demand, largely brought on by electric vehicle batteries, and the lack of domestic production. “Those who control these critical raw materials and those who possess the manufacturing and processing know how, will hold the balance of industrial power in the 21st century auto and energy storage industries,” Moores said.Additionally, here is the testimony from Simon Moores to the US Senate Committee: Simon Moores Testimony
With an excerpt from it in which he evens mentions Piedmont as one of the opportunities the US has to develop its own supply of Lithium:.....
A major driver for this is China’s lack of high quality domestic lithium resources. UScompanies have had the opportunity to lock up international lithium resources for the lastdecade but hesitated while Chinese producers invested.
Domestically, the US still has an opportunity to develop its own supply of lithium from a widevariety of sources including South Arkansas’ Smackover (oil field brine), North Carolina’sPiedmont (spodumene), Nevada’s Silver Peak (continental brine), and California’s SaltonSea (geothermal brine).
Funding for these new sources has been limited to date as institutional investors seek safehavens for their lithium dollars - Chinese, Australian or South American based companiesand assets - rather than the longer-term opportunity which a US domestic supply of lithiumbrings.
Outside of these typical finance providers, industry stakeholders are another potentialfunding source: lithium producers, battery makers, and car manufacturers are the most likelycandidates. But to date, these major corporations have been risk averse and moreconcerned about share price and shareholder value than longer-term investments set tobenefit the health of the US supply chain.
The rate of funding to build new lithium mines and downstream processing needs to double.So, IMO, good press and positive info and everything pointing in the right direction for PLL. Looking forward to the resource upgrade to get a mine life of at least 20 years and then the PFS that I expect to be in excess of $1B.
Cheers!
(20min delay)
