Lithium Master cracking whip at Atlas now....., page-218

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ozzieKochie

128 Posts.

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02/08/18

06:18

Post #: 34680528
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Originally posted by defabs ↑

Not sure if anyone has recognised how PLS reported its DSO income and operations in the quarterly and how this compares to the scant summary in the AGO quarterly.

We now know thanks to PLS that AGOs average purchase price is US 63.84 per tonne (US9.3M/145,974)

This appears quite reasonable as end customer sales of 1.5% lithium would be about double this. Obviously transport, crushing and port costs would need to be deducted but it appears to be quite profitable. Not sure why 145k dso was not reported by ago as purchased in the qtrly. Instead ago focussed on the amount of lithium that sailed during the qtr.

PLS QTRLY

First shipment of 85,000 wet metric tonnes of Pilgangoora Direct Shipping Ore (“DSO”) shipped to China by Atlas Iron Limited (“Atlas Iron”) pursuant to the Company’s DSO Sale Agreement with Atlas Iron; 145,974 wet metric tonnes of DSO sold to Atlas Iron during the Quarter with DSO operations on track to sell ~100,000 wet metric tonnes of DSO per month for a total of up to 1.5Mt.

• Funds totaling US$5.3M received from Atlas Iron for DSO sales under the DSO Sale Agreement, inclusive of a US$3M prepayment.

The first shipment of Pilgangoora DSO by Atlas Iron set sail from Port Hedland on 16 June 2018 with 85,000 tonnes of 1.6% Li2O DSO bound for China. During the Quarter, Pilbara Minerals sold at the mine gate a total of 145,974 tonnes of DSO product to Atlas Iron.

During the Quarter, Pilbara Minerals received cash totaling US$5.3M from Atlas Iron for DSO material sold during the Quarter under the terms of a mine gate DSO Sale Agreement (refer ASX announcements dated 20 December 2017 and 18 June 2018). These funds received included a US$3M prepayment which is required under the DSO Sale Agreement.
At 30 June 2018, the Company also recognised a receivable of US$4M for DSO material sold to Atlas, for which it received cash after the Quarter end.

AGO QTRLY

Atlas’ first exports of lithium direct shipping ore and manganese lump sailed during the Quarter. FY2018 export volumes of lithium DSO and manganese are 85,000 tonnes and 45,000 tonnes respectively.
Atlas signed an offtake agreement with Sinosteel Australia Pty Ltd for the export of lithium direct shipping ore purchased from the Pilgangoora Lithium Project owned by Pilbara Minerals Limited (see ASX Announcement dated 2 March 2018). Atlas processed and transported the ore using its Mt Dove crushing hub and Utah Point facilities.

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Yes it was interesting to me too that one announcement focuses on the revenue generated and states both sell price and the total volumes as opposed to the other that divulges as little as possible. Perhaps different company focuses??

AGO Price at posting: 4.2¢ Sentiment: Hold Disclosure: Held
6 Upvote

0 Great analysis

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