PLS SP value, page-23

Long term IMO this should be a win win for both parties and a powerful relationship but may require some compromise short term by both parties.

Yes, I agree the parties will need to compromise, however, the JV requires 315kt of spod to feed the JV chem plant, and 315kt prices below market prices would impact global spod pricing, including other PLS spod sales. Oz or WA gov investigated Tianqi back in 2016/17 for selling at below market prices to their associated offshore companies. So, I guess the supply to the POSCO JV needs to have a real market price mechanism.

The point I made is in regards to the fact that PLS is supplying 100% of the feed for the JV plant, while only receiving up to 30% of the chem plant profits. So, if spod term contracts are at US$1,500pt (AUD$2,000), PLS would derive ~AUD$1,500 pt profit from spod sales (315kt x $1,500 = $473 mill), whereas and based on hydroxide prices of US$27k, profits from 12,000 tonnes equates to ~AUD$207 mill, therefore spod sales to the JV would need to be at AUD$845pt (US$631) so combined spod/chem sales match said $473 mill profits when compared to just selling spod, not to mention the initial capex PLS need to invest in the JV, cost of debt, CR dilution, rogue North Korea missiles, etc, etc.

What I would like to see is CALIX tech proven up and in production at scale by end of 2023, and from thereon in, all spod production converted to midstream product, a Pilgangoora operations whipping boy/girl for spod production, lower shipping cost and royalties and a green premium for end midstream product.

There ya go, I don't want much do I......