Ann: Phase 1 Economics Updated and Improved, page-77

@Bayhunter your interpretation is correct From the announcement "C1 cash costs follow the convention developed by “Brook Hunt” for the reporting of direct cash costs comprising mine site, product transportation and freight, treatment and refining charges and marketing costs. By-product unit cost accounting methodology is employed, which allocates all costs less revenues for by-products taken as a credit, per tonne of recovered primary product, in this case lithium hydroxide on an LCE basis. AISC (or C3) include C1 cash costs as outlined above plus: royalties; corporate support and shared services costs; sustaining capital; lease principal and interest charges; and deferred mining and inventory adjustments capitalised" This is in the main body of the announcement the expected revenue from by products have been subtracted from the costs in C1 and then C3 costs are added to give AISC
Joe did say that these jump in costs would also be seen downstream in other companies AISC calculations as they revised their costs. Our position on the scale of low cost producers may not really have moved much at all even though we have seen a significant rise in costs. BHP advises that all costs have risen substantially, and that commodities will have to reflect these rises, nothing is going to stand still cost wise even though some high cost producers will feel the squeeze. Only my opinion but I think there has been a knee jerk reaction to this costings and the market needs to reflect on the fact that the costs are across the board for everyone, not just LPD, we are still very well placed regarding economy of scale.