Ann: Second Concentrate Shipment Ready for Export, page-15

Many spod sales are at less than 6% because there is a cost/benefit curve involved in the process. When there is great demand for lithia units, the most beneficial point on the curve of spod percentage production is lower down. When there is less demand for lithia units, the most beneficial point on the curve is higher up.

Another way of looking at it is a spod producer will generally achieve a higher recovery rate at lower SC (% lithia) value and suffers a loss in recovery rate if producing higher SC spod. So, while there is a higher price paid per tonne of spod at higher SC values, that does not necessarily mean for each mine it makes best financial sense to make and then sell their product at that highest possible (simply because the cost to produce per tonne sold will increase at a greater rate than the increase in sale price).

Hope that helps explain why it’s not always as simple as “but they are not ‘able’ to make X% spod” (likely they can, but it’s more beneficial to not in that then prevailing market).

Still, keen to know what is the average SC for this shipment as it will start to show how well the plant recovery percentage is improving as it gets dialled in during ramp up.