ALB just sold to BASF part of their company for $3.2 BILLION. Gonna buy up some lithium production with the $, imo. Closes in Dec. Hang on tight!
They also found a more insidious plot: Visium partner Sanjay Valvani was paying a former Food and Drug Administration official to tap a colleague, still at the FDA, for an inside line on generic drug approvals.
Valvani denies the allegations. The former FDA official, Gordon Johnston, pleaded guilty June 13 to passing insider information.
Shows how hard it is to enter this business. But the payoff is now huge. Technical barriers to entry by others make this stock now a super buying opportunity.
They are making a conservative announcement, imo. Actually they say US$10,000/ton. Other producers are having to meet contract prices and have only been able to raise prices in about 15% steps. Demand is exploding with so many giga-factories coming online.
April exceeded 1,000 tons. US$10,000/ton. Cost were ~US$3,500/ton and expected to drop to ~US$2,500/ton. June quarter expected to exceed 3,000 tons. Will be to full Phase 1 production by September of 17,500 tonnes per year. Phase 2 construction planned to double production by end on 2018 at about half of Phase 1 capital cost. Sweet!!
Google it. Says that April production excedded 1,000 tons at more than 10,000/ton. On track for full productuion by Sept and expanding plans underway. . http://media.abnnewswire.net/media/en/docs/83715-ASX_ORE_25052016.pdf
Director is not a full time, "job", but it has responsibilities. Many CEOs are directors at other companies because they can provide good oversight.
Lithium moving to Argentina per this http://www.bloomberg.com/news/articles/2016-05-19/richest-lithium-nation-risks-being-left-behind-in-tesla-led-boom?cmpid=yhoo.headline
The best lithium play is OROCF . Coming into production now and getting high spot market prices whereas the big 3 are tied into much lower contracted prices. Will be producing about 10% of supply when reaches full production in Sept or Oct this year! LACDF will be in production in Argentina in a couple years with SQM joint venture in Argentina and Tesla could well want to tap into the LACDF clay deposit in Nevada after Tesla's big capital raise; with a joint venture. LACDF has signed up Tesla's lithium guy to be their Nevada CEO. Huge almost certain price increases in these 2. Demand is going wild for lithium now. Several Giga-factories coming online right now and they don't care what the price of lithium is; it's just a small part of battery cost.
Chemetall (now Albemarle) thoroughly investigated the area around Silver Peak and knows the geology well.
They didn't like the property PE has, but prices have risen so much that they could now be an OK brine source. But since PE can't use evaporation, they are a risky play. Could well pay off. But SQM is investing $550 million and ~ 3 years in the LAC project in Argentina to give you an idea of the order of magnitude of investment needed. I like OROCF today and also LAC. HMGCF could well payoff, too, but I have a lot more invested in the other 2.
OROCF is coming online after big investment by Toyota subsidiary. Will be producing ~10% of market by this September. Is now selling at huge prices on the spot market while the big three are stuck with most of their production being sold at lower contracted prices. Only new source coming online now. SQM is expanding with the LACDF Argentine joint venture and investing ~550 million $ to get to production by 2019. LACDF has a huge clay deposit in N. Nevada not far from Tesla Gigafactory and has Tesla's lithium guy as new president of that division. Could well also be in production by 2019 and might be Tesla's main source by then. Demand is huge not only from Tesla. See OROCF website.
LEXG is not a good alternative to OROCF; however, their ultrasonic generator tool might be good for HMGLF who can't use evaporation ponds at Silver Peak. OROGF has a money machine coming to fruition now! not several years away like LEXG with blue sky potential.
How did it go?
More importantly, the Tesla gigafactory has now started selling the wall battery packs assembled from existing cells and will begin actually making the cells in 4th quarter of this year. Increasing the already huge demand for lithium.