MASSIVE PROFITS for NILI versus MASSIVE LOSSES in INDUSTRYIf I told you that I wanted to make a trade with you. The trade is as follows: you give me .32 cents and I give you $ 6.00 in return. Would you take it?
It would not be long before you come back with a boatload of .32 cents to trade it in for $ 6.00 per piece. You would think I am pretty foolish making this trade with you.
Well, it has been going on for 1 year now with NILI, foolish traders giving you share certificates at .32 cents each, which you can trade in at $ 6.00 per share.
Today on ceo.ca a poster put a link up where Atlantic Lithium, with the potential to produce 360,000 tons of spodume concentrate of lithium per year, is most likely going to close their doors down on the mine.
This is the problem with most spodumene miners. It cost $ 650 per ton in opex expenses and they get to sell it for $ 700 per ton on the market. Imagine doing all of this for $ 50 per ton. You have not paid employees, you have not paid office, you have not paid interest on debt, nor debt, not paid salaries, etc....
Isn`t it awful when the mine is UNECONOMICAL. And they are not even producing the LCE, just the concentrate version.
Now compare those margins with NILI which will refine lithium to battery grade or LCE. Graham stated that their opex costs will be +/- 30% lower than LAC. I personally think it will be 40% to 50% lower. So lets assume opex comes to $ 4,000 per ton LCE, NILI can sell this on the market at $12,000 per ton LCE. A fat PROFIT of $ 8,000 per ton LCE, compared to the $ 50 firm that is losing money.
These FAT margins leave lots of money for paying interest, paying debt, paying employees and for PROFIT. In addition, we get the market to ourselves as everyone will be out of business. Most hard rock companies are going to have significant difficulties competing with NILI.
Let the lithium price flush out the remaining unecononical mines, including those in China. Soon enough, we will have MANY BIDDERS for the crown jewel in Nevada.
Good Luck,