Post by
deepoil0808 on Jan 28, 2024 10:44pm
HIGH GRADE + DEPOSIT NEAR SURFACE = LOW COSTS
The lithium industry is very volatile and those who will survive will be those who can make fat profit at current lithium prices.
NILI REVENUE AND COST STRUCTURE
The spot price for lithium is: $ 13,500 per metric ton
Cost of mining + processing: 4,000 per metric ton
Profit per ton: 9,500 per metric ton (300%)
Amount of lithim 5,000,000 metric tons
Retail market value $ 67 billion
We know that we have higher grades that LAC next door, who are still profitable at these low lithium prices making 50% gross profit.
The winners in the lithium market will be those who can manage two things:
(a) Have high grade lithium
(b) Have lithium that can be mined cheaply (meaning at the surface).
NILI checks the boxes on both a) and b). Alot of lithium companies will shut down because their lithium grades are not high grade so costs will be greater than revenue.
The present cleanup process in the lithium industry is a blessing to NILI as it gets rid of 90% of the unprofitable lithium companies. Alot of the noise is finally shutting down.
What remains is the 10% that are profitable and a BIDDING war will ensue with MAJORS.
In order words, this lithium crash in spot prices is showing the world that NILI is holding a $ 67 billion powerball winning ticket.
Are you going to trade in your ticket for pennies?
Good Luck