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That has been my take on it too. Low Capex also means a very...

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    That has been my take on it too.

    Low Capex also means a very short payback period. If a hard rock and brine operation both started today, the hard rock operation would be out of debt and in profit territory before the brine operation had even completed evaporating, let alone put a single tonne on a ship.

    While I am bullish about the lithium market as a whole, I expect there will be times when there will an oversupply. During those times an operation that is already in the black can ride it out. An operation that is still facing a mountain of debt is going to see some pain.

    If worst comes to worst, (and I don't see that it shall for the hard rock early movers), it is a relatively easy thing to shut down a hard rock operation and restart it. GXY have proven that, even though the market was nowhere near as robust at the time and they ground their way through serious pain to do so.

    There will be a place for good quality operations in both hard rock and brine. The size and tenor of Earl Grey earns a 'good quality' tag from me.
 
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