Sign up Australia
Proactive Investors - Run By Investors For Investors

Kidman Resources continues to ride lithium wave by signing offtake agreement with Tesla

Electric vehicle maker signs agreement to secure lithium hydroxide from proposed new refinery in Western Australia.
Tesla sign and EV
The company is also in discussions with other interested offtake parties

Kidman Resources Ltd (ASX:KDR) continues to ride high on the lithium wave and the latest crest is the signing of a lithium hydroxide offtake agreement with electric vehicle giant Tesla.

The binding agreement is for an initial term of three years on a fixed-price take-or-pay basis from the delivery of first product and contains two three-year term options.

Company has integrated lithium strategy

It further validates Kidman’s strategy of being an integrated manufacturer of battery-grade refined lithium.

Investors have demonstrated their support of the strategy with shares up 8% intra-day to $2.34 on volume of more than 9 million.

Recent news flow has seen Kidman reach a 12-month high of $2.37 earlier this month.

READ: Kidman Resources selects site at Kwinana for proposed lithium refinery

The Tesla agreement follows Western Australia Lithium (WAL), Kidman’s 50:50 joint venture with Sociedad Quimica y Minera de Chile (SQM), signing an option to lease land for a proposed lithium refinery.

WAL has entered into an exclusive option to lease a premier site in the Kwinana Strategic Industrial Area in Western Australia.

The Tesla agreement equates to less than 25% of Kidman’s portion of initial nameplate production for the first three years from the refinery.

Others seek refined lithium offtake

In addition to this agreement, Kidman is in discussions with other strategic, globally significant parties also seeking refined lithium offtake.

Expressions of interest to date have materially exceeded Kidman’s portion of initial refinery nameplate production.

Kidman is targeting to enter into a limited number of offtake agreements while leaving a minority portion of future supply uncontracted.

View full KDR profile View Profile

Kidman Resources Ltd Timeline

Newswire
September 11 2017

Related Articles

mine
January 22 2018
Tungsten prices are on the rise and construction is proceeding apace at Barruecopardo
View of the Senator prospect in mountainous Alaska
March 14 2018
The company is set to release its maiden JORC resource at the Zackly deposit soon.
1522127971_walkabout-resources_lindi-graphite-project-tanzania-original.JPG
March 27 2018
The company completed a $10 million capital raising earlier this year.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use