Thanks for that, I gave it a listen.
He pretty much points out that there's an inverse relationship between capex and operating exependiture between brine and hard rock.
Brine may be cheaper to produce once operational, but the capex is greater than it is for hard rock.
Hard rock may cost more to produce, but capex is lower.
My opinion therefore is that at this stage of the lithium cycle hard rock is the best place to invest because it means lower capex and speed to market.
So I disagree with
@PICT and can't see brine exerting much competitive pressure for a few years at least.
PLS (unsurprisingly) seem to agree that hard rock is the way to go at this point in the lithium cycle:
"While hard rock producers are generally higher on the cost curve vs brines, they are advantaged by lower capex and shorter lead times, which in the current environment, enables them to exploit the high lithium price and maximize project NPV."
Source:
http://www.pilbaraminerals.com.au/s...es/foster-equity-research-2-february-2016.pdf
And here's the best part: whoever gets big off lithium first (ie. the big hard rock miners) can simply buy into brine producers and processors as they move through the cycle. Speed to market is everything and brine it appears is coming second, not first.
Personal opinion, pure speculation, DYOR, seek professional advice, I'm no expert etc