Ann: Result of BMX Auction, page-107

G'day DFS,

It's a good point you make that once the POSCO JV Hydroxide facility is up and running, that will absorb a large portion of what PLS current produces. From memory I believe that a lot of PLS more long term contracts expire in late 2023/24? Maybe someone can correct me here.

I guess this bodes the question, if we look forward into the not too distance future once we are at circa 680kt of production, how will this be split up between existing offtake partners, our own JV hydroxide facility, any CALIX ventures and any spot sales? Are people of the opinion that spot sales will continue for the foreseeable future? Or will spot auctions from the BMX eventually fade out as we lock in new long term contracts at higher prices, making the BMX auction obselete?

Say in 24-36 months time, we are at circa 700kt of production, would this be split up something like:
315kt POSCO
200kt long term spod contracs
200kt devoted to CALIX mid-stream product ventures
The rest to be continually sold via the BMX?

Food for thought.....I guess what I am trying to say is there is going to be a lot of options for how PLS should split up its spodumene production, obviously we are becoming diversified in the long term which will underpin the company for decades to come, however I would be interested to hear other's opinions on how they think this split will look.

GLTAH

Pap