Ann: SYA: DFS Confirms NAL Value With A$2.2B NPV, page-29

In relation to this idea of a reduction to the $900 per tonne if NAL is now producing less than SC6 (6%), I think you are all missing a very simple point here...

As you have quoted, the offtake stipulates: "based upon market based pricing, for the life of the facility, with a minimum price of US$500 per tonne and maximum price of US$900 per tonne, excluding any quality true-up to the standard specification of goods." :




.... To clarify again, it's based on market pricing capped at $900 per tonne, as I'm sure we all here should know.

Now market pricing is so incredibly far above that ceiling amount that even if producing 5.4% concentrate it will clearly still be sold to Piedmont at the maximum ceiling price of $900. If we say current SC6 price for example of US$3500 then if apply the reduction to this price based on same percentage reduction of grade (such as Pilbara calculates and sells their spod) then that still gives a market price for SC5.4 of US$3150 (10% reduction of SC6 market price).

This current market price for 5.4% is therefore still almost 3.5 times more than the ceiling price for the range of $500 to $900, so why some people think that SYAQ would even begin to consider selling the concentrate to PLL for anything less than $900/t is quite beyond me?

I do value the opinions and information provided by a number of you here, especially you @cmonaussie, so I can't understand why this particular point would even be up for discussion frankly?