Andrada Mining Share Discussion Threads

[dunns_river_falls] 23/3/2022 20:18

No idea what has happened with the quarterly production update. Should have been out by now.

[lasata] 23/3/2022 10:54

If we do go in to lithium production....?!

After more than quadrupling in value last year, lithium carbonate continues to soar in 2022, according to Benchmark Mineral Intelligence. The mid-March assessment by the battery supply chain research outfit shows that battery-grade lithium carbonate (EXW China, ≥99.5% Li2CO3) is averaging $76,700 a tonne, up 10% over just two weeks and 95% since the beginning of the year. A year ago, the commodity was trading at $13,400 a tonne.

The rally in lithium hydroxide, used in high-nickel content cathode manufacture, is accelerating, up 120% so far this year, narrowing the discount to lithium carbonate, which historically is priced below hydroxide.

Benchmark says that Chinese inventory levels for hydroxide, carbonate, and spodumene feedstock remain very low, sustaining the high price environment:

"Robust demand for material, and hence high prices, will be sustained in the near-term, with expectations that the seasonal recommencement of supply from domestic Qinghai brines in the coming months will provide little relief to the growing market deficit."

Many investors who got burned by the last lithium price bust of 2018 have probably been watching on the sidelines, not sure what to make of the current mega-rally.

To be fair, China's spot market, where small tonnages can have big price impacts, may be accentuating the scale of this mega-rally, but make no mistake about it: this is no false flag, with everything from mined spodumene to high-purity hydroxide, and every component of the lithium processing chain experiencing a wild price surge.

The price explosion tells you that lithium supply is simply nowhere near enough to feed this demand surge.

Demand Explosion
The last lithium boom five years ago was attributed to a failure by producers to anticipate the demand wave emanating from China's subsidy-driven roll-out of EVs.

The subsequent supply response, particularly from hard-rock spodumene producers in Australia, proved to be overkill leading to the price bust of 2018-2020.

Consequently, new mines were mothballed, expansion projects were deferred, and many explorers folded operations and left to try their luck elsewhere.

Then suddenly, in a classic boom-bust-boom commodity cycle, it happened: lithium producers have been caught flat-footed again, ill-prepared to meet the current even stronger demand surge fueled by the global energy transition and EV revolution.

But the ongoing lithium boom has plenty of steam.

EV and new energy vehicle (NEV) sales in the pivotal Chinese market jumped 157.5% to 3.52 million units in 2021, marking robust growth in an otherwise lackluster domestic automotive market.

Many electric buses in China have switched to lithium iron phosphate (LFP) batteries. Two years ago, Tesla Inc. (NASDAQ:TSLA) introduced LFP batteries in its standard range Model 3s in China and dropped the starting price from 309,900 yuan ($48,080) to 249,900 yuan ($38,773). Last year, the EV kingpin Tesla announced that it's switching battery chemistry for all standard-range Models 3 and Y from nickel cobalt aluminum (NCA) chemistry to an alternative, older technology that uses an LFP chemistry. CEO Elon Musk has revealed that the improving energy density of LFP batteries now makes it possible to use the cheaper, cobalt-free batteries in its lower-end vehicles so as to free up more battery supply of lithium-ion chemistry cells for Tesla's other models.

But Chinese battery-makers are now discovering that you can play around with the metallic cathode mix as much as you want, but lithium still rules.

In a recent report, Benchmark Intelligence says that record-high Chinese lithium carbonate prices have pushed the costs of lithium iron phosphate – or LFP cells – higher than high-nickel cells on a dollar per kilowatt-hour basis, compared to a deep discount historically. Indeed, the analysts have warned that the chaos in nickel metal markets may spill over onto the metal's use in the battery supply chain, potentially reversing the LFP trend.

[lasata] 17/3/2022 08:13

Offtake agreements for lithium could arrive at anytime and would be a gamechanger so frame time for that could be whenever.......

[nesty1760] 16/3/2022 21:21

The video is a good overview.
Koolio - I concur re the timescales, the ATM team have progressed things very promptly in the given time and numbers, as you stated the numbers could be conquered quicker.
I do sometimes wonder with these type of podcasts, that they delaying the herd, whilst they get in prior!
All IMHO

[koolio] 16/3/2022 08:19

Quite objective and informative, I don’t think he captures quite how fast the team has moved to get us in the position that we are in today. If the energy is maintained and the environment for tin remains positive we should achieve the numbers discussed in a much shorter time frame.

[homebrewruss] 15/3/2022 21:26

Portfolio Matters appraisal of Afritin

[kaka47] 15/3/2022 17:44

Great to catch up with @ZaksTradersCafe to talk about our adjacent licence area in Namibia. The licence has Spodumene on it and provides further evidence of the extensive Lithium mining opportunity we can add to our existing mine. #atm #lithium #tinhttps://www.voxmarkets.co.uk/articles/traders-cafe-with-zak-mir-anthony-viljoen-ceo-afritin-18eac22/

[kaka47] 15/3/2022 14:52

ATM Mcap 80 million All time high Tin prices is helping Generating more and more Cash (1 million plus dollars every month). could be producing lithium in 12 months and they are finding more and more of it.

[ukgeorge] 15/3/2022 12:03

56,360 for me @ 7.23p

Roll on 10p

[ukgeorge] 15/3/2022 12:00

Yes right back to the breakout point, I'm tempted to have a top up.....

[stockhunters] 15/3/2022 11:50

retest of the breakout

[ukgeorge] 14/3/2022 18:32

A chunky 2.33M trade at 7.56p late report from Friday and 500k and 350k

[lasata] 14/3/2022 12:31

Agree tin was the original reason for investing here......and lithium the icing on the cake....if it sets...

[stockhunters] 14/3/2022 11:53

any takers

[goodgrief] 14/3/2022 11:34

Fingers crossed... Though the tin asset is pretty impressive itself.

[ukgeorge] 14/3/2022 10:51

GoodGrief,

They have also said this

"discovery of spodumene, a lithium-bearing mineral, within its fully permitted mining license ML 129, situated 11 kilometres SW of the Company's flagship asset, the Uis Tin Mine"

"The Company intends to conduct an exploration drilling programme on this target during 2022, with the aim of adding to our existing lithium resource at Uis. Lithium from these sources can be of interest to both technical and chemical lithium markets, the latter finding application in lithium-ion batteries."


I'd like to hear more about when the new targets will get drilled. Hopefully H1 2022.

[goodgrief] 14/3/2022 10:38

They need to confirm they've got battery grade material.This is what they have said so far...The low contaminant levels of technical grade petalite makes it suitable for the glass and ceramics marketThe Company is also investigating possible offtake routes in the battery materials market.

[lasata] 14/3/2022 10:32

It is the lithium potential which really excites me with production possible within 12 months

[ukgeorge] 14/3/2022 09:43

I wouldn't be surprised if we have a back test of the breakout this week. Which would be a test of 7.2p, this will hopefully now be support.

[lasata] 14/3/2022 08:02

As the CEO said..."enjoy the ride"...

[hiddendepths] 11/3/2022 18:00

It wasn't my little top-up!

[dunns_river_falls] 11/3/2022 17:38

Should have the qtrly figures next week hopefully. Cracking week, yet only at the start. Its not PI's driving this now imo. On the cusp of big things. Planning to supply 2-3% of the worlds tin. Then add in the lithium and tantalum. Just hope we don't get taken out on the cheap.

[ukgeorge] 11/3/2022 17:31

someone was keen (obviously had a good site visit) 550k buy at 7.8p

The share price has been consolidating for nearly a full 12 months, so decent move up is long overdue. Especially when you consider Tin has trebled or around that in the last year, and lithium is up four fold.

nice end to the week :)