General Discussion Topics, page-116605

PLL banter :

Project is owned 75% SYA and 25% PLL

Based on revenue of $2000/tonne

Project generates

• 23000t spodumene per qtr
• Revenue = 3,000/t USD
• Cost = 1,000/t USD
• = 46M USD per quarter

But:
SYA need to sell 11,500 to PLL for $900
So transfer pricing shifts:

• (3,000- 900) x 11,500=
• $24M to PLL

So Project actually only earns $22M

SYA gets 75% = $16M

PLL gets 25% = $6M + $24M = $30M

So PLL is basically getting a 65% interest in the project

So PLL need only pay 35% of the Project value to acquire the 75%.

It's actually a very clever deal for PLL, and I've seen them do a few like this. Rare to find a commercial CEO, but this is one....

THAT'S RIGHT, BOD you have been weighed, measured and found wanting. COMPLETELY OUT OF YOUR LEAGUE.