the year is 2027 and spod prices are $4,000 as an example for you.
PLL will make 113,000 times (4,000-900) = $350 million in 2027.
Now the idea that they just give this offtake deal up to fund and build a chemical for nothing is not in the realms of logic or business prowess.
If I can make $350 million this year from selling my offtake and you want me to jointly agree to a chemical plant there must be something in my hand as I am giving up 350 million this year.
Opportunity cost which bankers know all too well!!
If there is no compensation PLL can make their own chemical plant with someone else, charge the plant market rates and keep the 350 million per year coming in. Satisfies Quebec chemical plans and PLL maximises their shareholder wealth. There is plenty of spodumene in Canada in 2027!
It is wishful thinking Sayona(ites) hope the offtake which clearly states life of mine and any further chemical plans by the JV must jointly agree will just tear up the contract worth 350 million for just one year without a benefit for Piedmont.
350 million annual earnings is not 'losing short term, for long term gain' the money is in the mining for now not chemicals.
If the roles were reversed I would not expect Sayona to just walk away from 350 million a year earn for nothing.
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