General Discussion Topics, page-141879

Sayona produced 49,660/t at a cost of $A62M (Apr-Jun) which equates to a Unit Operating Cost of $A1,248 ($US811). The Unit Operating Cost in the last quarterly was based on spod sold, but there is a reasonable amount that was unsold.

In this second half of 2024 PLL is still entitled to 96,500/t for their offtake, which effectively means that most, if not all, spod produced for the rest of 2024 will go to PLL. If as you say, the spot price will average somewhere around $U850/t-$U950/t then SYAQ will sell it to PLL for somewhere around $U765/t-$U810/t (SC5.4%). There will then be a small reduction in that sale price to cover the cost of transport to the port. So SYAQ might average about $U770/t for spod sold to PLL over the 6 months.

Unit Operating Costs currently at $U811/t and average sales at $U770, so not a lot of difference. Certainly not ideal, but NAL hasn't finished in reducing their Operating Costs yet. That current $U811/t figure could work its way below the $U770 figure, at which point the PLL offtake starts to produce a small profit for SYAQ.

Despite the less than perfect offtake deal with PLL, SYAQ is actually better off at the moment selling all spod into that offtake as opposed to selling on the spot market with the huge transport costs to ship it to China. Hence, SYAQ could soon be making a small profit from the PLL offtake, but would be far from profitable selling on the spot market until such a time that spot prices rise enough.