Divesting 20-49% for downstream chemical facilities?, page-118

PLS will have between 270kptpa and 400ktpa of available SC6.0 concentrate following Stage 3 - enough to produce between 36ktpa and 53ktpa of lithium chemicals .

ALB paid US$1.15bn for 375ktpa of concentrate (50ktpa of chemicals). I don't think they would have placed much value on the right to market MIN's offtake/downstream product - more to do with not marketing the same product to the same customers.

On the above basis, the PLS offtake, which represents 22.5% to 33.3% at a project level, is worth between US$0.8bn and US$1.2bn.

By way of example only, if PLS wanted to retain an interest in downstream processing, they could tip a 30% project interest into a JV, retain a one third interest, effectively selling 20% for say, US$0.7bn. Or they could just sell the interest, without participating in downstream, and bank the premium.

BTW: I haven't heard or read from anyone who is credible that has suggested ALB overpaid. On the contrary.

Note: The ALB/MIN transaction excluded Tantalite, and was subject to MIN providing certain services (at a margin over cost), such as crushing.

It will be interesting to see just how much PLS offtake is available. Will it be 270 or 400kpta? Could it be more? We don't know the terms of the existing offtake agreements - What are terms of the options? Have the contract conditions been met? Can the agreements be terminated for a fee? etc etc. I am sure Macquarie Bank will be all over these issues, and more.