Ann: Binding Offtake Term Sheet with LG Energy Solution, page-126

The announcement says "Pricing is determined using a formula-based mechanism referencing market prices for batterygrade Lithium Carbonate".

I've worked in a superalloys business and I can say that pricing volatility is tracked very closely and materials are purchased using options and futures. Metals purchasers will buy and sell based on predicted market prices in the future.

I would assume the words "formular-based mechanism" means someone fired up a spreadsheet and predicted what lithium would be trading for in 2027, 2028, 2029, 2030, and 2031, what the potential costs of extraction and business running would be, and then worked out a fair price based on that information.

One thing ASN management have proven is they are no slouches, they won't have sold themselves short so... I doubt the contract is for todays market price. It will be an adjusted market price based on future price predictions and future COGS predictions.

I've only started posting here on ASN but have been following these threads and holding the stock for approx. 2 years now. Managed to buy in just before the first rally in Aug 2022. Extremely positive about the future of this stock and signing a contract with a company as big and with the reputation of LG is really impressive. Congrats ASN!