RE:RE:The plot thickensThanks Dalesio, yes that's the article I was referring to.
The rumour is interesting as I mentioned in an earlier post that Ford has an off-take agreements with Allkem/Livent for
13,000t hydroxide and Ford will initially take SC6 form Wabouchi until hydroxide plant is running. If this this rumour is true Ford not gonna wait around for Allkem to get hydroxide plant running they want there own chemical plant.
Also In todays FS study management increased the price deck slightly, some think positive, some negative as they don't really delve into the thinking behind it. A 65 % discount to 12 months trailing avg price is still a healthy discount.
There is a current ongoing debate that IRA compliant materials should get a premium to the market price. Producers either will charge customers a premium directly for product or producers won't charge a premium because they will receive IRA compliant tax credits...either way the producer wins
here's a couple of link on that thinking. fastmarkets - confusion over IRA requirements fastmarkets - three take aways of the IRA One other thought on the FS increased CAPEX.
The 2023 Federal budget included the extraction and processing tax credit for critical minerals.
The Tax Credit rate is proposed to be equal to 30% of the capital cost of eligible property associated with eligible activities. The budget outlines that eligible property will generally include machinery and equipment, certain industrial vehicles and related control systems.