RE:RE:Conservative Li pricingDoggerJT wrote: Mookster3 wrote: The PFS uses very conservative Li pricing; e.g. US $1350/t for Li concentrate @ 6%, whereas current spot price is US$4,000/t@ 6%..
Very conservative.
I look at CRE for their Feasibility Study estimates and they used $4,039 per tonne of technical grade, vs. FL's $3,000 per tonne. They also used $1,852 per tonne of chemical grade vs. FL's $1,350. That's over a 30% premium on FL's assumptions.
And as per Raff's comments, imagine what the final numbers look like if/when the inferred moves into the M+I category.
Boom.
For those that are hard of hearing... BOOM!!! ;-)
GLTA
Further to my comments on the CRE FS vs the FL PFS, CRE defined their technical grade as 6.0% lithium and chemical grade as 5.5% lithium. FL defines the technical as 7.2% and the chemical as 6.0%. That's another significant difference.
This is not a knock on CRE at all, as they are a viable operation, but the assumptions used by FL are a lot tighter. To me, the difference in the NPVs is a lot more than we see in this release... using the CRE assumptions I wouldn't have any problem running the Frontier NPV up to 3.5Bn USD.