15c is Care and Maintenance Territory., page-11

Choosing to package the lithium units to the customer in the form of a 4.8% rather than 5.8% product isn't ideal (Core pays more logistics costs), but its not quite the "low grade, crap mine" scenario that its made out to be by down-rampers of whom there are many around.

Consider 1,000t of 1.4% ore:

• 4.8% with 63% recovery = 1,000 * (1.4/4.8) * 63% = 184t of SC4.8
• 5.8% with 63% recovery (if that were possible) = 1,000 * (1.4/5.8) * 63% = 152t of SC5.8.
• Packaging the lithia units as 4.8% is more product but lower grade. NB: 184 * (4.8/5.8) = 152

Clearly the recovery rate would be lower than 63% if the grade hadn't dropped but Core's customers were prepared to accept the lithia units packaged as a lower concentration which assisted Core to ship more lithia units to them by having a higher recovery rate.

By packaging the lithia as a lower concentration product Core isn't paying any more in mining costs. Core is presumably not paying any more in processing costs (but that would depend on processing contract specifics). By packing the lithia units as a 4.8% product Core has got recoveries higher. Core needs to pay 21% more in logistics as its shipping 21% more product (184/152 - 1). Given Core's near-port site that's not a big extra cost. It would be a more significant extra cost if Finniss was located a long way inland. There may be a lower price point for lithia units packaged as 4.8%, rather than 5.8% but this would come down to discussions with customers and those discussions are confidential. I understood that Ganfeng is the world expert in processing mid and lower grade concentration ore. Because of their Ganfeng's skill in processing lower grade ore, the price they are paying may have a closer link to lithia units than packaging grade.