lotustpsll replied the topic: Alliance Mineral Assets
2 imminent milestones – feasibility report/resource estimate and off-takes agreements. The signs so far are all positive (refer to recent Canaccord report). I note from the report of “tight market conditions for lithium”.
If there are strong off-takes inked, I should expect a strong price uptrend.
The HotCopper forum is interesting and the views there are insightful.
Alliance has secured offtake agreement with HK listcos Burwell which Burwell announced last night. fantastic confidence booster to the market, so the mine is as great as Amal has been suggesting. will stock regain the 40 cent level in the weeks ahead? will brokers lift trading restrictions?
Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce that it has received commitments to raise A$15.0 million (before costs) via the issue of 60 million new fully paid ordinary shares in the Company at an issue price of A$0.25 per share (“Placement”). The Placement was strongly supported by domestic and offshore institutional investors.
The placement follow’s Tawana’s announcement it had signed a binding five-year exclusive lithium concentrate offtake agreement with Hong Kong-listed Burwill Holdings Ltd. The agreement included a prepayment of $25 million (Tawana’s share is $12.5 million) (Refer ASX announcement 26 April, 2017).
Lithium is heating up, with the price globally on the rise following higher demand.
The U.S. geological survey (USGS) estimates lithium production last year increased 12% due to a spike in demand in lithium-ion batteries. That demand will likely stay strong as automakers, such as Tesla plan massive roll outs of electric cars in the coming years.
Meanwhile, lithium producers are ramping up capacity to meet that increased demand, while other companies are racing to the finish line. This has caused a noticeable uptick in activity in South America’s lithium triangle, which hosts more than half of the world’s lithium reserves.
According to the USGS, output in Argentina alone jumped 60% in 2016, owing to a new brine operation and a leading Argentine producer bulking up its output. A producer in Chile bumped its output by 20%.
The USGS notes despite available capacity, spot lithium prices last year rose 40% to 60% around the world, excluding China, where prices jumped 300% partly due to a temporary shortage of imported spodumene from Australia.
The three major producers in the lithium triangle — Albemarle (NYSE: ALB), Sociedad Quimica y Minera (NYSE: SQM) and FMC (NYSE: FMC) — registered average share price gains of 53.5% in 2016 and 21% year-to-date as of May 4, 2017.