I bought some PLL with the intent to get exposure to Atlantic Lithium, might have to do some research on what the terms of the deal between the two are.
Piedmont currently has 22.5% ownership of the project I believe and will earn 50% upon investing another $70M and has 50% off-take entitlement, life of mine.
If I’m correct, I’ve read that pretty much every major OEM worldwide has announced recently huge investments, and battery production facilities in Germany and or North America. In other words, battery materials demand scaling up massively next 3-5 years. Inevitable.
@@RockStockChannel Granted. But backed by very wealthy backers. Just put billions of dollars into yet another plant in Arizona. So whether they make it long-term or are bought out, or their technology is bought out, they most likely will still have a positive demand effect overall on the related industries. Thought experiment: imagine Rivian and Lucid technologies/companies merging. 😳🚀
@@RockStockChannel Granted. But backed by very wealthy backers. Just put billions of dollars into yet another plant in Arizona. So whether they make it long-term or are bought out, or their technology is bought out, they most likely will still have a positive demand effect overall on the related industries. Thought experiment: imagine Rivian and Lucid technologies/companies merging. 😳🚀
Howard, just reviewed this discussion again and enjoyed it. I have a problem with PLL and as a partner with AL1 others might have the same queries. Where is PLL? Plenty of hot air and screwing SYA for spodumene at a very low price, but where is it processed? Does PLL have any Lithium Hydroxide refinery staff? They cannot be taken seriously when they talk of reasoning residential land to build a refinery. Albemarle gained approvals for the Kemerton refinery in 2018. Still not operational to Train 1. PLL did not take up the option of buying more AL1. Bit of a mystery to me.
What role does African spodumene play in that analysis? Mines like Bikita and Sabi Star in Zimbabwe, owned by major producers in China, each potentially producing 300k tons of spodumene and 300k tons petalite concentrate, are ramping up nicely but are not getting enough attention.
I have switched from a pistol to a shotgun with etf REMX. It is heavy Pilbara, Albemarle, Arcadium, SQM and Liontown. Light onLAC, LAAC, SLi and PLL. With some rare earth and metals stocks.
I'm inclined to agree that Chinese lepidolite and African DSO aren't as big a factor as the stocking/destocking, given the prices of other battery materials (i.e. nickel) have moved down along with lithium. Great interview, thanks.
I wonder if AMG Lithium will get its expansion online in Q1. But at this point the spodumene prices are so low it hardly matters. They will also stop producing for 3-4 weeks to install the expansion to 130.000 tons.
A11 looks over priced. Market cap is actually over $600m once you account for 40% ownership. 35MT is a very small JORC - if you apply the tonnage to the market cap it’s priced at the same premium as developer producers like Sigma and Liontown. That’s before you consider the Africa risk. I’m still confused how it isn’t trading about 30% lower.
The takeover bid is at a large premium to the current share price. The earning potential is huge very soon. The resource is of very high confidence and growing quickly.
@@Yosukesucks takeover premium only applies in this bear market once a bid is unconditional. 35MT trading @ $600m+ market cap. Other developers have larger deposits with just as high quality ore in safer jurisdictions and trading at lower market caps.
3% of mining tenement has been drilled. They have recently released good intercepts to market. I'm thinking 50-55mt Li by the time Ewoyaa is in production. This is obviously a massive value driver but you also need to understand that the CAPEX is already funded pending a pre-payment for early mine life offtake of ballpark $100M. Add in the extremely low AISC of $675est. and the value add from Feldspar byproduct. The margins are industry leading. It's an imminent cash cow.
@@JALV98 I don’t doubt future exploration potential but the market is simply not pricing future exploration potential into any company except A11 right now. The valuation is so over done that Atlantic’s 35MT JORC is now priced at $17.3m of market cap per MT which makes Atlantics tonnage priced at a higher rate than Liontowns. This makes zero sense especially when you consider Atlantic operates in Africa where you can suddenly be put under trading half for 1-2 years.
Sorry Mr. Catalano, but your predictions and advice on these African miners is highly questionable and should not be taken by retail investors to risk losing their hard earned savings. Atlantic's ASX chart also does not look all that impressive either 📉 Thanks Howard and Rodney for asking the right questions her and for not falling in line.
Great guest and great questioning. Learnt a lot 👌
Thanks. Glad you liked it!
An hour well spent thank you.
Glad you found it useful. Cheers
Thanks for posting
Pleasure
I bought some PLL with the intent to get exposure to Atlantic Lithium, might have to do some research on what the terms of the deal between the two are.
Piedmont currently has 22.5% ownership of the project I believe and will earn 50% upon investing another $70M and has 50% off-take entitlement, life of mine.
50% less, 50% of Government- MIF investment dilution
If I’m correct, I’ve read that pretty much every major OEM worldwide has announced recently huge investments, and battery production facilities in Germany and or North America. In other words, battery materials demand scaling up massively next 3-5 years. Inevitable.
Not to mention start ups like Rivian and lucid. Both with major factory expansion/breaking ground.
Demand remains strong with 3-5+ year view.
I think Rivian will make it. Less sure about Lucid@@grizzlymartin1
@@RockStockChannel Granted. But backed by very wealthy backers. Just put billions of dollars into yet another plant in Arizona. So whether they make it long-term or are bought out, or their technology is bought out, they most likely will still have a positive demand effect overall on the related industries. Thought experiment: imagine Rivian and Lucid technologies/companies merging. 😳🚀
@@RockStockChannel Granted. But backed by very wealthy backers. Just put billions of dollars into yet another plant in Arizona. So whether they make it long-term or are bought out, or their technology is bought out, they most likely will still have a positive demand effect overall on the related industries. Thought experiment: imagine Rivian and Lucid technologies/companies merging. 😳🚀
Howard, just reviewed this discussion again and enjoyed it. I have a problem with PLL and as a partner with AL1 others might have the same queries. Where is PLL? Plenty of hot air and screwing SYA for spodumene at a very low price, but where is it processed? Does PLL have any Lithium Hydroxide refinery staff? They cannot be taken seriously when they talk of reasoning residential land to build a refinery. Albemarle gained approvals for the Kemerton refinery in 2018. Still not operational to Train 1. PLL did not take up the option of buying more AL1. Bit of a mystery to me.
What role does African spodumene play in that analysis? Mines like Bikita and Sabi Star in Zimbabwe, owned by major producers in China, each potentially producing 300k tons of spodumene and 300k tons petalite concentrate, are ramping up nicely but are not getting enough attention.
The upside to Frontier and Patriot with their high grades is mind boggling to me that it hasn't caught on to the rest of the market. Holding strong
Best of luck
I have switched from a pistol to a shotgun with etf REMX. It is heavy Pilbara, Albemarle, Arcadium, SQM and Liontown. Light onLAC, LAAC, SLi and PLL. With some rare earth and metals stocks.
thanks for letting us know!
I'm inclined to agree that Chinese lepidolite and African DSO aren't as big a factor as the stocking/destocking, given the prices of other battery materials (i.e. nickel) have moved down along with lithium.
Great interview, thanks.
Thanks for your comment
I wonder if AMG Lithium will get its expansion online in Q1. But at this point the spodumene prices are so low it hardly matters. They will also stop producing for 3-4 weeks to install the expansion to 130.000 tons.
Thanks for the Amg update
Just read an article stating that Macquarie has issued a new research report: Demand is increasing, supply Falling 👍
Yes
A11 looks over priced. Market cap is actually over $600m once you account for 40% ownership. 35MT is a very small JORC - if you apply the tonnage to the market cap it’s priced at the same premium as developer producers like Sigma and Liontown.
That’s before you consider the Africa risk.
I’m still confused how it isn’t trading about 30% lower.
Totally incorrect. See my post why it's extremely undervalued at the current price.
The takeover bid is at a large premium to the current share price. The earning potential is huge very soon. The resource is of very high confidence and growing quickly.
@@Yosukesucks takeover premium only applies in this bear market once a bid is unconditional.
35MT trading @ $600m+ market cap.
Other developers have larger deposits with just as high quality ore in safer jurisdictions and trading at lower market caps.
3% of mining tenement has been drilled. They have recently released good intercepts to market. I'm thinking 50-55mt Li by the time Ewoyaa is in production. This is obviously a massive value driver but you also need to understand that the CAPEX is already funded pending a pre-payment for early mine life offtake of ballpark $100M. Add in the extremely low AISC of $675est. and the value add from Feldspar byproduct. The margins are industry leading. It's an imminent cash cow.
@@JALV98 I don’t doubt future exploration potential but the market is simply not pricing future exploration potential into any company except A11 right now.
The valuation is so over done that Atlantic’s 35MT JORC is now priced at $17.3m of market cap per MT which makes Atlantics tonnage priced at a higher rate than Liontowns.
This makes zero sense especially when you consider Atlantic operates in Africa where you can suddenly be put under trading half for 1-2 years.
Sorry Mr. Catalano, but your predictions and advice on these African miners is highly questionable and should not be taken by retail investors to risk losing their hard earned savings. Atlantic's ASX chart also does not look all that impressive either 📉 Thanks Howard and Rodney for asking the right questions her and for not falling in line.
Thanks for your comment. Cheers,