Critical Elements Lithium Corp V.CRE

Another sharp increase in battery-grade lithium prices

[Matteo01]

According to Fastmarkets.com the price for carbonate went up 10.6% last week, hydroxide went up 6.1%

Prices on Friday September 17th 2021:
Lithium Carbonate 99.5%: 165,000 yuan, up 13.8% from the previous week
Lithium Hydroxide 56.5%: 165,000 yuan, up 10% from the previous week

Prices on Friday September 24th 2021:
Lithium Carbonate 99.5%: 182,500 yuan, up 10.6% for the week
Lithium Hydroxide 56.5%: 175,000 yuan, up 6.1% for the week

Both carbonate and hydroxide are prices are now over $20,000 USD / ton. $30,000 USD / ton is not impossible in 2021 if prices continue rising at this pace.

Link:
https://www.fastmarkets.com/commodities/industrial-minerals/lithium-price-spotlight

Matteo01

[monkeyhere171]

And what's the price od spodumene? That's what CRE will be selling for the next 5 years! I believe in their FS they had it at $350 or so and it takes 6-8 spodumene to make hydroxide.

[Montreal10102]

On page 12 of their corporate presentation CRE has chemical grade spodumene at $750/t and technical grade spodumene at $1500/t. If I'm not mistaking recent sales of chemical grade spodumene surpassed $1250/t in july in Australia, also record breaking prices of $2240/t for 8000 tons at a recent auction this month. Higher Hydroxide and carbonate prices = higher spodumene prices 

[monkeyhere171]

The Australian prices were spot prices not long terms contracts. Wondering how much these go as that's what CRE will get and I'm surprised they have upped the price of spodumene in the presentation to $750 as last year I believe it was $350 or so. Anyway painful to watch this another 4-6 months until something happens 

[Matteo01]

Monkeyhere171, CRE's production cost for spodumene after tantalite credit will be $337/ton. In the feasability study they used a selling price of $750/ton for chemical grade spodumene. At $750/ton the average annual EBITDA will be $183M. Imagine how more money CRE would make if they can sell spodumene for double the price used in the FS. Pilbara just sold some spodumene for $2,240/ton which