Melbourne lithium update - We attended

Yesterday afternoon we attended a Melbourne shareholder update for our lithium exploration Investment Latin Resources (ASX: LRS).

To view the presentation slides, click here.

After a few years stuck behind a computer screen, these types of in person meetings are great to get along to, and it’s always good to see how presentations by our portfolio companies are received.

First up, managing director Chris Gale gave an update on LRS’s resource definition drilling at its new lithium discovery.

The major takeaway from the presentation was that Chris is focused on getting a maiden JORC resource defined by the end of the year, although there is still a lot of untested exploration upside that could make LRS’s project even bigger in the years to come.

Following Chris’ presentation, an analyst from research firm Benchmark Mineral Intelligence (BMI) gave an update on the supply/demand situation in the lithium market.

Our key takeaway was BMI’s belief that we are already experiencing a structural lithium supply shortage — a situation that will only worsen over the coming years.

The analyst also touched on a recent BMI report that says, “To meet the world’s lithium requirements would require 74 new lithium mines with an average size of 45,000 tonnes by 2035”.

With the macro outlook so strong, we think LRS’s strategy of fast tracking its project to a maiden JORC resource and preliminary economic assessment should bring much more interest to what LRS is doing with its lithium discovery.

What’s next for LRS?

We want to see LRS complete its resource definition drilling program and establish a maiden JORC resource to form a preliminary economic assessment report.