Sign up United Kingdom
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

Related Articles

March 07 2018
Production at Thalanga is forecast to grow more than 50% between 2018 and 2019.
April 12 2018
The Silver Cloud project lies on one of the world's richest gold belts
Pantoro processing plant
April 04 2018
The company's AISC for the December quarter 2017 was $990 per ounce.

No investment advice

The Company is a publisher. You understand and agree that no content 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 further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. 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.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

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