For me all signs point to Albemarle be the buyer of CypressI have watched the board for some time and find it to have useful information and posters that have some good insight. It also has the a few characters at times. What I do notice is that frustration mounts at the speed of progress of the project at times. As well as the share price not being higher. So I have decided to post for the first time here with my thoughts on this company.
Here it goes:
#1 to start with I am a huge believer in CYDVF. I have made a huge bet on this company as it is a large percentage of my net worth. I have done this because I without a doubt am sold on the fact this is probably the single most desirable lithium asset in North America and perhaps the world. Lithium in not rare and found just about everywhere. However the location for this project is unmatched. The U.S. and more importantly Nevada. It is also the best project in Nevada. Lithium Americas and Ioneer have hurdles to their development that Cypress does not. Once Cypress secured the water rights it was game over as to had the #1 lithium project in Nevada and by default North America. I know there are many projects out there I have dug into many of them and have not found one better then Cypress.
The combination this project has of location, grade of material, life of mine, low strip ratio, mine layout that allows for conveyor of material to process plant (no trucks needed), size of deposit, possible REE by-product, water rights secured, low cost of production will work in all market conditions for lithium, no environmental issue, US govt. has declared lithium a critical material, 100% interest in the property, I could go on. Most of here already know this. This is the #1 spot to be when it comes to a lithium investment hands down so buy up what you can. Sit tight and be right.
Now here is my take on how this ultimately ends up and why I think Cypress is directly in the crosshairs of its Clayton Valley neighbor Albemarle. The first indication was the change away from the sulfuric acid leaching process that was in the PFS to a chloride process for the pilot plant. In other word basically using a brine to leach the clay. Then they added the DLE process at the end to etract the lithium from solution. To me this screams to me that brine operation at Albemarle will be merged with the clay mining on the Cypress property. This allow for faster extraction of the brine than Albemarle currently has through the evaporation process that takes months rather than hours. Second Albemarle once tried to sue in court to get the water rights Cypress now owns and was unable to win so there is a history here with the much needed water. Thirdly Albemarle would be foolish to let an OEM like Tesla, GM, Ford to get access to a low cost lithium resource in their back yard. Or a battery maker either for that matter. The margins on this project would be a huge addition to the bottom line. Lastly just about every presentation I see lately there is a little nugget dropped about the brine process in the pilot plant that screams Albemarle has us in their sights without mentioning them by name.
I am all but convinced they are the driving force behind the pilot plant changes. I also think they know that they will have to come correct when it comes time to buy Cypress. Many will want this project for all the reasons I have pointed to. When that BFS is finished the NPV on this project will be in the 2 billion + range at much less than current lithium prices. So I will be buying as my finances allow on top of what I already have. I will sit tight and be right. I will be rewarded. Its not a matter of if only a matter of when. Good luck to everyone out there.