 SP Angel today:-Atlantic Lithium* (ALL LN) 15.96p, Mkt Cap £103m Mine Operating Permit issued for Ewoyaa lithium mine in Ghana(Ewoyaa Ownership: Atlantic 62.9% falling to 40.5% if Piedmont fund their share of Ewoyaa, Piedmont 18.2% rising to 40.5% on project funding, MIIF Sovereign Wealth fund 6%, Ghana 13%)(Piedmont are contracted to pay $70m + 50% of the total Capex to raise their stake to 40.5%. Total cost would be $135m to Piedmont on a $200m capex.)The Minerals Commission of Ghana has issued the Mine Operating Permit for the Ewoyaa Lithium Project in Ghana.The permit was the last regulatory approval required before starting construction of the Ewoyaa Lithium Mine and Process PlantManagement need to complete the financing package with one or more new offtake partners and potentially other lenders before making a FID ' Final Investment Decision'.The team are also waiting on the final ratification of the Ewoyaa Mining Lease by the Ghanian government which should resume sitting on 15 October.Lithium market: Rio Tinto's interest and potential offer for Arcadium Lithium, the world's third largest lithium producer lends confidence to future expansion in the lithium market.We recently spoke to a Chinese buyer of lithium who reckoned the market had bottomed out and was looking for a +20% increase in demand for lithium hydroxide.Benchmark Minerals Intelligence forecast lithium demand to rise to 4mtpa in 2035 vs 0.68mt in 2022. This equates to another 73 mines at an average production rate of 45,000tpaBenchmark's forecasts look similar to lithium for other raw materials including, cobalt, nickel and natural graphite in terms of the number of new mines required to meet estimated li-ion battery demand.Conclusion: Atlantic is looking to complete the financing and permitting required to start construction of the Ewoyaa lithium mine this year.We are aware of a number of buyers looking to add to their offtake and look forward to further news on the mine financing with respect to the offtake portion of the total capex.*SP Angel acts as Nomad to Atlantic Lithium. Two mining analysts from share price Angel have visited the Ewoyaa mine site in Ghana. Our analysts also visited the Ministry of Minerals Commission and MIIF, the Ghana Minerals Income Investment Fund which has invested in Atlantic Lithium and the Ewoyaa project. |
Rio's has made a bid for Arcadium listed on the US exchange valuing the group at around $4bn.Analysts regard the bid as opportunistic and suggest a valuation of around $8bn might be more appropriate.Arcadium is a producer but this might lend some stability to lithium stocks in general after recent marked underperformance.The Times comments today-"Despite the downturn in prices, Rio is playing the long game. The demand for lithium is forecast by the World Economic Forum to reach 1.5 million tonnes of lithium carbonate equivalent by 2025 and more than 3 million tonnes by 2030, compared with production of about 180,000 tonnes last year." |
Now we need the offtake agreement sorting. The are after 75-100 I'm thinking they would have to come to some quite ingenious structure to satisfy both parties requirements because lithium on its backside and no one wants to commit to this price moving forward but who can predict the future. Probably negotiate variable formula moving forward with lump sum up front . They need that money though to honour their capital commitment . Difficult one which is why it's taking so long but good news today. |
Not that interested in lithium prices in 2050 and I certainly won't be interested in lithium prices IN 2050.Furthermore that sort of prediction just shows how stupid some analysts are. Who can possibly say what the demand for lithium will be in 2050 even if the world is still a functioning entity. There may be no demand at all if, for example, we all switch to hydrogen based energy which seems quite likely in five years or so..Quite honestly it's impossible to say with any degree of certainty what will be happening in a year's time let alone 26 years.Rant over! |
Stop it you! |
Lithium is seen as a critical mineral in the global energy transition, particularly for its use in the batteries required to build EVs.
Demand is forecast to increase by nearly 500 per cent by 2050. As such, analysts expect the recent slump in lithium prices to reverse in the near future. |
U huh! Hmm! Yeah, yup!https://x.com/alex_avoigt/status/1842127206425698591?s=46&t=gJ40HEpUT4gYZeQiLJHwfw |
Everybody can see Lithium is being side-lined by later developments |
Neil Herbert26 Sep 2024 19:53Https://www.investmentreports.co/interview/neil-herbert-1315 |
Next 6 weeks |
No mention of the Off - take agreements?? |
Interview with Neil Herbert... |
Very positive step forward today. Hopefully Neil will now emerge from the woodwork and update us on Ratification & Off-takes. Q4 could see us re-rate significantly in my opinion.Fingers crossed |
Permit finally awarded plus industry news in the last couple of days has been positive.Question is,will this provide a pivotal turning point for the stock or just a short term fillip."(Bloomberg) -- Lithium producers surged from Asia to the Americas on speculation Chinese battery giant Contemporary Amperex Technology Co. halted production at a major mine.The stoppage will spur an 8% cut in China's monthly lithium carbonate output and "will help rebalance the supply with demand," UBS analysts led by Sky Han wrote in a note.The shutdown is positive for the commodity, according to UBS, which expects 11% to 23% upside for lithium prices in the rest of 2024. " |
From the COB - Auzbiz.co.ukThe lithium space has endured an awful time since early 2023, wiping out most of the gains since the pandemic. Good old-fashioned supply and demand have smashed the price of lithium by around 90%, and although the exact pricing is a touch opaque, the trend is most definitely not. One major concern around demand is potential tariff hikes from EU and US regulators retaliating against perceived Chinese dumping of electric vehicles into the respective markets. However, for adoption to improve, we need EV prices to fall, and reducing competition with tariffs will have the opposite effect. Hence, markets are nervous about demand into 2025, driving prices even lower. Several higher-cost miners have tried to reduce costs rather than curb production, but this cycle is likely to pressure them further. The huge supply reaction to 2022 prices illustrates that there is plenty of lithium available, and bringing it on stream isn't too hard. However, it's not necessarily economical, especially if demand doesn't accelerate from current levels. In June, we sold Pilbara Minerals for $3.50, a genius move if we had also sold our Mineral Resources position, which also carries lithium exposure. Lithium pricing/production isn't as straightforward as gold and copper, but we are confident from a sheer price perspective that IGO is the best positioned, followed by Pilbara Minerals, especially when the latter ramp up production. The downside momentum and sentiment toward lithium stocks is poor and a "washout" drop to around $2.50 wouldn't surprise us, an area where we again like the risk/reward. |
hopefully these sort of developments will get the EV market back on track
Samsung unveils 600-mile solid-state battery with rapid charging
Samsung announced a solid-state battery with a 600-mile range at the SNE Battery Day expo in Seoul, in August. (Top Speed)
The battery maker also revealed the battery can charge to 80% in just nine minutes, potentially revolutionizing the EV industry.
The battery uses a solid electrolyte instead of a liquid one, offering more energy storage, better safety, and a 20-year lifespan.
Samsung plans to mass-produce these solid-state batteries in the next few years, with more affordable options also in development. |
...more than the current market cap.. |
Well it's ratification and 127 million! Dollars basically. Spud price, may have impact but that's basically the market more than the current market cap. |
Once ratification done will likely go back above 20p. Imho |
The ratification will trigger a circa 27-28 million investment in the local assets/project. Total investment being 32 million. |
So what are they finalising then? |
On the Ghana side, the pension funds won't invest till we are in production. |
Nope, they paid 20p a share. |
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