Ann: Extended Offtake Agreement with Chengxin Lithium, page-101

Hi Yasch

I was aware of those contracts. They were fixed price contracts with CATL who in those days was a major shareholder in PLS and were crucial in the early days of PLS development. it was like a helping hand from big brother. Not denying fixed price contracts existed, but those contacts didn't include reference to the market price.

I could be a floor price believer if the offtake statement read like this

"Consistent with the existing pricing in the agreement, all spodumene concentrate volumes will be sold mostly based on the prevailing market price."

Could you imagine the kerfuffle if the word mostly was used. If the market price is lower that the floor price mostly comes into play, because it's not all Spodumene.

Damn it I promised myself to stay out of it.

Cheers Lies