European Lithium Ltd (EUR.ASX)

by Barry Dawes
CRML executes Shareholder Agreement with Obeikan for JV 50/50 JV to build lithium refinery in Saudi Arabia Exclusive offtake from Wolfsberg spodumene mine US$0.03-0.04 cts/kWh power costs very attractive BMW offtake agreement assigned to new JV – US$15m paid in Lithium price in bottoming process

Lithium and Rare Earths Portfolio

SUMMARY

  • CRML executes Shareholder Agreement with Obeikan for JV
  • 50/50 JV to build lithium refinery in Saudi Arabia
  • Exclusive offtake from Wolfsberg spodumene mine
  • US$0.03-0.04 cts/kWh power costs very attractive
  • BMW offtake agreement assigned to new JV – US$15m paid in
  • Lithium price in bottoming process
  • CRML pass through value still > A$0.50/ EUR share

KEY POINTS

  • JV execution allows renewed progress at Wolfsberg
  • Saudi Arabia lithium refinery will have very low energy and other operating costs
  • Lithium market may recover soon
    • Watch Gangfeng share price!
  • Acquisition of TANBREEZ rare earths will be a game changer for CRML
  • EUR still ridiculously priced
  • Re rating must come soon
  • Market cap A$78m on 1,398m shares @ A$0.054

Critical Metals Corp and the Obeikan Group have executed the Shareholders Agreement to form a joint venture with Critical Metals Corp to construct and commission a large-scale lithium hydroxide processing plant in the Kingdom of Saudi Arabia to process spodumene concentrate produced from the Wolfsberg Lithium Project located in Austria.

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