New TA/Charting, page-15738

Hi Artorius,

Good question and I'll do my best to explain this one a bit better.

The falling AUD against the USD is favourable because LTR receives revenue based on USD for its spodumene concentrate sales. As the AUD weakens, the same USD revenue converts to a higher amount in AUD. This is particularly advantageous as all our other costs from capital costs to operational costs, including wages and other expenses, remains in the weaker AUD, meaning the company effectively benefits from a stronger USD without an equivalent increase in costs thus boosting profitability.

For example, I have placed a table below which demonstrates how much revenue we would receive on our latest Jaguar shipment when the AUD was worth 0.66 USD versus now when the AUD is only worth 0.62 USD.

The formula for calculating revenue for LTR is a bit complicated as you can see by the many rows in the table (there are a few things to factor in), but essentially the yellow highlighted part reflects how much AUD we would receive at each exchange rate.

Due to the drop in AUD, the company has actually pocketed an extra $833k in revenue on this one shipment alone.

	Vessel	Jaguar	Jaguar
1	Wet Metric Tonnes- Use actual if known, otherwise use shipping logs inclusive of a ~8% moisture rate.	12,110	12,110
2	Moisture Rate-Use actual if known, otherwise H2 guidance indicates an 8% moisture rate.	8.00%	8.00%
3	Dry Metric Tonnes (DMT)- Use actual if known, otherwise estimate on 8% moisture rate per H2 guidance. Sales occur of DMT basis unless otherwise stated in customer contracts.	11,141	11,141
4	Grade of Li2O	5.4%	5.4%
5	Shipment Date (Docking)	15/12/2024	15/12/2024
6	Shipment Date (Departure)	30/12/2024	30/12/2024
7	Payment Date (Letter of Credit)- Management issues a quality certification approx. 4 days after shipment to draw down on their letter of credit with customer.	3/1/2025	3/1/2025
8	Estimated Spodumene Proceeds
9	DMT SC6 Spot Price (USD)- Unless otherwise stated, will be at the date of quality certification and letter of credit.	USD‎ 850	USD‎ 850
10	Price Adjusted for Grade (USD)	USD‎ 765	USD‎ 765
11	CIF costs (AUD)- LTR ships to the port so add back cost for shipping and insurance estimated at A$75 wmt.	$‎908,250	$‎908,250
12	AUD Conversion @ 0.66 vs 0.62	AUD $‎1,159	AUD $‎1,234
13	Estimated Spodumene Proceeds	$‎12,005,414	$‎12,838,553

Hope this all makes sense and isn't too confusing!

Cheers,
CK