Late last year Atlas Iron signed a deal to export low-cost “DSO” lithium from Pilbara Minerals’ Pilgangoora project in Western Australia to China.
The agreement was based on Pilbara Metals Atlas selling 1.5mtpa of Lithium to Chinese heavyweight Sinosteel over a 15-month period on a fixed priced basis.
Pilbara Minerals will mine the ore at its Pilgangoora project, 120km South East of Port Hedland in Western Australia’s Pilbara region.
Atlas will buy the ore at the mine gate and crush it at its Mt Dove operation, 65km south of Port Hedland, before transporting it to Utah Point in Port Hedland for shipping.
Its a perfect scenario, as Pilbara Minerals has the Lithium Mine and Atlas Iron has the Infrastructure network in place to take from Mine to Port.
Atlas estimates it will make a tidy net profit of between $15 million to $30 million.
Even better for Atlas — there is no capital outlay required.
“Who gets to make potentially $30 million for no capital? That’s seriously cool,” managing director Cliff Lawrenson told Stockhead.
Read the Full Article: https://stockhead.com.au/resources/atlas-iron-strikes-lithium-deal-china/
WATCH #ASX report at Midday. Fortescue Metals $FMG snaps up 20% in Atlas Iron $AGO, joining stakeholders Macquarie Group & Credit Suisse. Plus news on Investa Office Fund $IOF new major tenant, & a2 Milk $A2M rally. Plus trade figures disappoint #Ausbiz https://t.co/S5jcM766ww
— Jessica Amir (@Jessica_Danelle) June 7, 2018
A bit of deal action in the mining sector. FMG buys stake in Atlas, says it won't back offer from Mineral Resources https://t.co/1ojY6gBArU
— Neil Hume (@humenm) June 7, 2018