Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
US LITHIUM Piedmont - great write up. Share price rising quickly, but you read the article and you can see why.
BMW & ARRIVAL building factories along with the RUMOUR of TESLA GIGAFactory land already bought ! Albemarle 17km down the road a world major in lithium.
https://www.google.com/amp/s/stockhead.com.au/resources/tesla-supplier-piedmont-lithium-expects-more-deals-with-carmakers/%3famp
LITHIUM Biden shows intent with EV mobility and indicates this is the way forwards. Piedmont UP towards highs now !
https://www.google.com/amp/s/www.theverge.com/platform/amp/2021/1/25/22249237/biden-electric-vehicle-government-fleet-ev
US LITHIUM News - Piedmont Lithium PLL near 100% up since Jan 1st !
Biden shows intent with EV mobility and indicates this is the way forwards. Piedmont UP towards highs now !
https://www.google.com/amp/s/www.theverge.com/platform/amp/2021/1/25/22249237/biden-electric-vehicle-government-fleet-ev
Got a new possible link I am part way through.
Amazon US.
Biden shows intent with EV mobility and indicates this is the way forwards. Piedmont UP towards highs now !
https://www.google.com/amp/s/www.theverge.com/platform/amp/2021/1/25/22249237/biden-electric-vehicle-government-fleet-ev
Dr. Andreas Rompel, Chairman of Jourdan, states, “The fact that companies such as Piedmont Lithium, who recently signed a supply agreement with Tesla who invested into Sayona Mining, which has properties located close to Jourdan’s, shows the importance of the Val d’Or region for lithium supply to the world’s largest EV companies. As part of the global initiative to focus on EVs and clean energy, Jourdan is strategically accelerating its work on its lithium project in Northern Quebec and has already initiated bulk sampling and will be seeking partners in the EV space going forward.”
Great companies in safe country in Canada with all the US and Canadian global powerhouses needing supply. Much less risk.
Read this. Africa imho is not where you should be looking.
I left a full post on here to my reasons but today read this and thought of your question.
Sharpeye. Had a look took me 10 mins and I would personally not invest. Many of my rules are broken with IRR.
The wording firstly in the lithium update this week , I have questions and not just 1.
99.9% Lithium Hydroxide grades produced in a lab ? Even if I saw the 99.9% Lith Hydrox it needs a pilot plant to prove the concept. The concept for creating lithium carbonate and then up to hydroxide battery grade is known and many who post seriously don't have a real clue about what it takes.
US$65 million capital cost ? Even for plain surface strip out that is very very low imho.
I know a gold mine owner who lives in Melbourne. He was the biggest private shareholder in EMH. We are good friends and I learn't a hell of a lot from him, EMH and how politics can kill a mine, greed normally, plant , grades and locations of plant can all make a difference.
3 years ago I held 6 lithium miners. I sold all on over promises and length of time and constant cash draw.
My main reason is I now only invest in a single specific mine. Easier to fully understand costs, get a feel for the owners / Bod , market activity ( supply chain, offtakes, cash raised from partners and where it is being spent ).
IRR not only have a very large lithium strike open ended , possibly 2, BUT also bauxite and gold.
It could very very easily become a very diluted money pit?
It could be the best ever mine, but I could provide details of 10 lithium mines , 8 of which are great but either Company are ran by idiots or in a dodgy country.
There is a lot and I mean a lot if detail missing in just this weeks rns on lithium, so I would not buy in personally.
Just be very very very careful mate. Seen a lot of BS before.
Even a take off deal does not mean anything until they have paid for and installed plant. One seriously great mine I do keep my eye on in Africa has it all, nice tight single mine with amazing grades. Drought hit and they ran out of water!
Now where does it tell you these things in an rns or on a forum ? Doubt everything, do very deep research in the Bod and watch totally what the other opps are doing. One bad day at thd gold mine could bring a perfectly good lithium share price down.
Just do hours of research before you jump in. Many of those posting are talking BS. Over excited.
Hi MajorOak, thought I would find you over here! have you had a look at IronRidge following their announcement on Zaranou? If so, any thoughts? Current valuation of £69m against a LOM on just this asset of $1.55 billion seems low to me.
US 160GW TESLA LITHIUM new factory just over in Austin Texas.
https://eu.statesman.com/story/business/technology/2020/11/30/checking-in-on-teslarsquos-austin-area-factory/115074054/
https://www.google.com/amp/s/www.bizjournals.com/austin/news/2021/01/11/austin-chamber-wins-deal-of-the-year-tesla.amp.html
To give you an idea of the values of one contract for 5 years supply.
"Yahua, which is based in southwest China’s Sichuan province, did not provide tonnage figures but, in a filing to the Shenzhen Stock Exchange, put the total value of the contract at $630-880 million over 2021-25.”
US TESLA Lithium needs = New GIGAFACTORY for Piedmont Lithium production ??? Looks like an obvious thing for Mr Musk to do tbh ? Why pay extra for others to make your batteries ?
https://www.google.com/amp/s/cleantechnica.com/2021/01/01/tesla-hiring-battery-engineers-in-north-carolina-semi-truck-engineers-in-nevada/amp/
US LITHIUM UP10% PRE Market @@. Piedmont looking at another cracking day ! Hope someone took up my 1st Jan tips for Piedmont & Standard Lithium. Enjoy the extra cash
TESLA BUYOUT @PIEDMONT looks very much like a good bet although Albemarle lithium mine Kings Mountain is only 17km down the road factory plant and processing already. Why would Albamerle not want to buy out or combine with Piedmont Lithium mine ?
So with TESLA looking at a Gigafactory in North Carolina and Major Albamerle 17km away with processing already in place , what would you do ???
US$80.00 per share buy out with true value of Piedmont Lithium operation with CAPEX and further 20% spare cash factored in for expenses my US$180.00 After dilution makes PLL look like a cracking buy. ?.
Loaded up on ASX before Christmas and loaded up early Jan and as you know tipped PLL SLL as buys for 2021.
Looking pretty mega to my eyes @@
US LITHIUM Piedmont PURE ROCK Spodumene IS the real deal !!!
Rather than the harder to process and much more costly lithium clays and bromine rhyolite mines being touted about in the press , rock spodumene is harder to find in the US , so Piedmont along with global lithium giant Albemarle who own Kings Mountain 17km down the road on the same high grade Tin-Lithium seam which has previous decades of Tin mining until they were closed down on the drop off of the Tin price in the 1980's.
Now Lithium is so much more the required metal, Piedmont Lithium finds itself being the biggest HARD ROCK Spodumene mine in the US and listed now as a CRITICAL Metal to the US as they seek to increase US supplies without the extra cost of transport and political supplies.
Nearly all lithium is now sold to the mega lithium factories in China. They do have lithium BUT the vast majority of Chinese lithium is of poor quality not good enough for battery grade.
The US are creating 10+ Lithium Gagafactories across the US mainly in the Industrial North East and far West Nevada, Arkansas, Arizona.
Interestingly the other US lithium share I hold is STANDARD LITHIUM using lithium brines processed in ONLY 36 HOURS not like the salt flats in South America which take 12-18 MONTHS to come to production and rely upon good dry hot weather, Standard Lithium is a 24/7 production pricess using a totally new way to create "BETTER THSN BATTERY GRADE" Lithium Chlorine which is then machine dried within 36 hours !!!
Standard Lithium should go to a full production model within weeks ,thus the share price rise ! This share has far to go along with Piedmont.
https://www.reuters.com/article/us-piedmont-lithium-deal-tesla/australias-piedmont-signs-lithium-ore-supply-deal-with-tesla-shares-surge-idINKBN26J03H
BREAKING* Tesla has a Battery Cell Production job listed on its careers page in Raleigh North Carolina. roughly 3 hours away from Piedmont Lithium’s project PLL, where it has been announced that they will be supplying Tesla with lithium for its batteries @vincent13031925 @EvaFoxU
BREAKING* Tesla has a Battery Cell Production job listed on its careers page in Raleigh North Carolina. roughly 3 hours away from Piedmont Lithium’s project, where it has been announced that they will be supplying Tesla with lithium for its batteries @vincent13031925 @EvaFoxU
Piedmont is my biggest choice pure potential for Tesla full buyout !
Hi RH
Thought I’d already asked this!
So you see 4x from here, give or take..$40-$180 ish
So of the two... SLL and PLL which are you piling into!?
Currently approx 13 million shares @ approx $40.00 per share = $520,000,000.
What would dilution or buyout price be ?
20,000,000 for dilution @ $40.00 = $800,000,000.
33m shares at $8,000,000,000 for the 20 years life of mine less costs the share price should be around $187.00 per share based on profit and CAPEX / Expenses.
$187.00 per share Piedmont Lithium.
Approx $8BILLION PROFIT for LOM. Equal to approx $400 MILLION profit per year give or take. That is clear profit.
Even if they are 25% out on costs $300Million profit per year.
US LITHIUM PIEDMONT up again 8.5% .... dyor. Tipped this at $27.00. If you read the ASX forums the move to US repatriation makes it easy for 2 possible reasons :-
1 - Easier to gain the finance US Critical Asset being financed by US funding and state
2 - Takeover ! Hardly any shares and 100% owned with Tesla as first off take partner.
Australia investors are a different breed. They love mining and are very knowledgable and also most take no S##t on the forums. If you get a ramper or some BS they soon hammer the poster so great for actual facts.
30-40% seem to think the location of Albemarle's Kings Mountain Lithium Rock mine 17km down the road ALREADY with a Lithium processing plant are and have shown interest , thus the request for repatriation. 17km down the road and full processing plant, Albamerle being one of THE global lithium majors, why would they not be a partner or buy it out BEFORE dilution for finance and off take partners ?
Any news on off take partners or Tesla buying more will only push up the price ? Make's it more expensive to buy out ? It makes complete sense.
The other buyout rumour is Tesla with what I think they are calling the "Terragigawatt" lithium battery factory is already starting construction !!!
https://www.google.com/amp/s/www.forbes.com/sites/billroberson/2020/07/27/that-was-fast-teslas-new-austin-terafactory-prep-already-underway-as-stock-continue-to-soar/amp/
Basic 80,000 tons of Lithium Carbonate ONLY (cheaper than hydroxide so you can ramp up the true price but conservative estimate here) PER YEAR.
80,000ton p year @ $10000 per ton ave X 20 LOM (Life Of Mine) = $16,000,000,000 BILLION minus costs of $5,000 per ton ( again could be less & I used only $10,000 per ton value on lithium Carbonate which could also be higher) approx
$8
"Preliminary Economic Assessment prepared by Advisian, a consulting arm of Worley Parsons, released June 18, 2019 considers the production of battery-quality lithium carbonate through a phased build-out to a total 20,900 tonnes per annum (tpa) from the contemplated joint venture with Lanxess AG at their three-operating bromine-processing plants.
Key Points:
Annual production: 20,900 tonnes lithium carbonate (1)
Plant operation: 25 years (2)
Total capital expenditures estimate of US$437 Million (3)
Non-optimised reagent cost per tonne lithium carbonate of US$3,107
All-in operating costs, including all direct and indirect costs, reagent, sustaining capital, insurance and mine-closure costs of US$4,319 per tonne of lithium carbonate (4)
Average selling price $13,550 USD per tonne battery quality lithium carbonate (5)
Pre-tax US$1.3 Billion NPV at 8% discount rate and IRR of 42%
Post-tax US$ 989 Million NPV an 8% discount rate and IRR of 36%
Resource upgraded to 3,140,000 tonnes Lithium Carbonate Equivalent (LCE) at the Indicated Category
Notes:
All model outputs are expressed on a 100% project ownership basis**
[1] Total production, using existing brine supply rates at the completion of Phase 3
[2] Plant operation commences upon completion of Phase 1
[3] Includes 25% contingency of both direct and indirect capital costs
[4] Includes all operating expenditures, including sustaining capital and allowance for mine closure
[5] Selling prices ranging between US$10,840-16,260/tonne were modeled as part of sensitivity analysis
** 70/30 JV in favor of Lanxess AG with an option for Standard Lithium to achieve 40% subject to attaining certain milestones"
https://www.standardlithium.com/projects/arkansas-smackover
Standard Lithium now process lithium carbonate within 36 HOURS
"In the conventional process for lithium extraction from brine, the lithium-rich salt water is pumped to the surface and deposited into a series of massive ponds that occupy many thousands of acres where passive solar evaporation occurs. This process can take anywhere from eight months to greater than a year. After the water has evaporated, and other minerals have been precipitated out through the addition of chemical reagents, the remaining lithium enriched solution is transferred to a plant where additional unwanted elements are removed from the solution. It is then chemically treated to create the final product of lithium carbonate, or further processed to lithium hydroxide. This entire process involves pumping millions of gallons of brine per day to the surface in some if the driest and most fragile eco-systems, the process is also very inefficient with lithium recoveries of roughly 50%, leaving much of the precious material unharvested. The removal of massive volumes of brine can also impact nearby freshwater aquifers exacerbating existing water shortages, and the evaporation process leaves huge salt tailings piles.
A new, modern approach to how we extract and process critical minerals like lithium is overdue. STANDARD LITHIUM are making a move on the market supply of Lithium Hydroxide.
"President and Chief Executive Officer, commented: “We are excited by the continued positive news on the exploration front. In 2019 we increased our Mineral Resource Estimate from 16.2Mt @ 1.12% to 27.9Mt @ 1.11%, and we believe there is significant potential for further increases. The Carolina Tin-Spodumene Belt is one of the world’s largest spodumene occurrences, and as we continue to build our land package and have exploration success, the potential for mine life extension or throughput expansion will be an important area of focus.”
https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2224-nasdaq/pll/72470-piedmont-lithium-reports-new-spodumene-pegmatite-discoveries-and-final-phase-4-drill-results.html