Altura off take agreement with Ruifu, page-3

It would seem that Ruifu and Altura have negotiated a minimum price of US$550/t and a maximum price of $US950/t for 6% concentrate, with “pricing based on a Li20 formula incorporating published reference pricing weighted for lithium carbonate and lithium hydroxide.”

If anyone has/knows this formula I would love to see it.

If Cxo and Ruifu were to negotiate a similar deal for 5.5% concentrate, I would imagine it could be something like a minimum price of US$475/t and maximum price of $US875/t with the same Li20 formula and weighting for carbonate and hydroxide. As our Mets have shown us, we have high quality, low impurity spod, which could be a good fit for hydroxide, therefore hopefully this would net a price closer to the maximum end of the price scale.


In 3 weeks time it will be a year since the non-binding term sheet was signed with Ruifu. Unlike the Yahua deal, there was no timeframes published re the Ruifu deal. Pure speculation, but, I wonder if it was decided that a decision had to be made within a year?

Now, if you would all indulge me whilst I put on my conspiracy hat, I have a timeline for you:

30/7/2018: Ruifu signs a non-binding term sheet with Cxo for up to 150,000tpa of concentrate which must be between 5.0% and 5.5%.

5/6/2019: Lithium Royalty Corp (James Brown) makes a strategic investment in Cxo where in exchange for $8.1mil LRC are to be paid a 2.5% royalty on production. Some might say a bit of a risk by LRC, given that finance and second offtake hasn’t been finalised, and environmental approvals had yet to be announced.

9/9/2019: Altura Mining (James Brown) sign an offtake deal with our non-binding partner Ruifu for 35,000tpa. It looked like there was a little bit more supply Ruifu could have got from Altura, but for whatever reason they decided on 35,000tpa. As we know from our non-binding term sheet with Ruifu, Ruifu has capacity for up to 150,000tpa. Assuming Ruifu haven’t made any more supply deals in the last year, then if you subtract the 35,000tpa they are receiving from Altura from the 150,000tpa capacity, that leaves Ruifu with 115,000tpa capacity remaining.

Coincidentally, if you subtract the 75,000tpa we are giving Yahua from our 180,000tpa plant output, that = 105,000tpa. Looks like I know where Ruifu can get their remaining concentrate from

9/9/2019: Cxo announce that offtake discussions are advancing and/or being finalised.

Conspiracy theory conclusions:

1. Perhaps LRC weren’t taking a big risk after all. Perhaps you could say that LRC had an inkling that Cxo might not be too far away from signing its second offtake

2. Perhaps there is a reason why Ruifu only went for 35,000tpa when there was up to 50,000tpa up for grabs.

All 100% speculation, opinion, hypothetical, with a dash of humour and fun.

GLTAH