Resumen de Reed Resources' Barrambie looks to 2020
The partnership on Mt Marion is on a 'build-own-operate' basis where Mineral Resources would fund all development costs and build, own, and operate the project. Reed's development strategy is to mine the spodumene ore from Mt. Marion with Minerals Resources as operator and then build a downstream plant to produce lithium battery materials through a proprietary process. Reed does not plan to own the processing facility and has said that it will enter into joint venture.
"The scoping study, which was based on 50,000 tonnes of feed, or 13,000 tonnes TiO[subscript]2, indicated a total cost of $1,200/tonne," Chris Reed, managing director, told IM, when questioned on the cost of bringing Barrambie online.
"As against an average market cap of A$315/tonne ($285/tonne) (contained Li[subscript]2 O resource) of lithium peers, Reed's market cap is ~A$100/tonne. Similarly, Reed's market cap is ~A$3/tonne (contained TiO[subscript]2 resource) compared to TiO[subscript]2 peers, who have an average market cap of A$24/tonne," RB Milestone outlined in the report.
