Offtake by November, page-5

I'm actually one of those people that is in the "don't actually care about offtake" camp.

offtake contract prices for lithium are usually more toward the long term average than spot prices. i.e. they are "smoothed out" with less volatility.

For example, e.g:

High lithium pricing environment:
Spot prices - $20,000 USD / t
offtake contract prices - $14,000 USD / t

beneficial for the buyer in the offtake agreement (not us)

Low lithium pricing environment:
Spot prices - $7,000 USD / t
offtake contract prices - $10,000 USD / t

beneficial for the seller in the offtake agreement (us)

i'd rather Jerko sell 2,000 tonnes on the spot market at the reported price of 165,000 yuan / $35,000 AUD.

that's $70 million dollars.

I'd be more happy to be in an offtake partnership when the lithium prices aren't as great. OR, at least if we are going to be in some offtake agreement at least make them PREPAY for it so we can commence the construction on the 12,000 plant considering the buyer will be receiving the goodwill of lower contract prices.

All about that strategy. We are finally the ones with more negotiating power than the buyers of the lithium product. May as well use it.