PLL entitled to 113mt of SPOD at a ceiling price of US$900/t. Guidance is 144mt, which means if new nameplate is hit, SYA gets 31mt (22% of total production).
Current production cost for 5.4 Li2O is US$793 * excluding freight and royalties (so 78% of SYA's output will be sold at cost basically).
If on target, and let's be honest, when have they honestly hit a target that hasn't been obfuscated, they would get 31mt per FY. At current spot prices, would net $52M in revenue, potentially $30M in profit. Is that big enough to cover ongoing annual exploration, downstream ambitions, issues as they arise?
We're trading at a significant premium to our actual EBITA.
SYA Price at posting:
5.2¢ Sentiment: Sell Disclosure: Held
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