Bankruptcy negative Cashflow, page-124

Having additional anticipated cash inflow will help. But IMO what should be the biggest focus at the end of this month is that unit cost per ton.

You can have as much cash as you like, but unless our margin moves to profit all cash does is drag out our demise. So unless we move into green at some point soon we may run out of cash before we see the next lithium boom.

The Chinese or SMM spot price today is about 1,019 USD varying between 5.5%-6.2%. now assuming we are at the lower end, perhaps we can secure 1000USD per ton. Now thats about 1,477 AUD/ton. Our March 2024 QTRly or rather the last quarterly had unit cost at about $1,536 AUD/ton. However, there are other costs excluded from this which the JV face in producing spod which is the royalties and freight costs.

I havent seen it posted yet, but if management want to clear up comminication in this coming quarter, it would be good for them to show shareholders the all in sustaining cost of producing 1 ton of spod. This would better reflect how close we are to some sort of margin. But these costs do make a margin at present and under the current economics quite challenging.

The big issue for SYA is having to ship/freight spod to China which is an extra 2000kms at minimum more than Australia, so we have added cost there, we also have winter which impacts the ability to mine far more than the Australian summers of 50ish degree days.

The other issue we have is the JV OTA of a capped price of $810 spod. While its somewhat relative as they wear 25% of the opex costs too, we are still open to risk on not meeting production targets, whereby PLL get there 113,000 and the residual may only be 40k tons for SYA at the market rate and at 75% share.

Ultimately we need prices to rise OR for management to show margin or else its simply a slower or faster demise pending on how long we can hold out..