Ann: 121 Frankfurt Conference Presentation, page-23

With regard to downstream processing, I tend to agree with@GARETH78 and @8horse

I posted the below post on the LTR thread yesterday, it relates to their downstream ambitions.
To me, the profit margin on SP6 concentrate is gigantic, downstream requires big capex for a margin at present of 29%
I'm not even sure how we'd do it with no local gas supply - LNG??

I think it's great Leo are talking DSO, downstream etc, because that is what the market wants to hear, but to me the big money is in concentration.

Anyway, this was my post - the graphic is from their presentation.

>>>>>>>>>>>>>>

Looking at the below graphic from the presentation, it appears to me the greatest return is coming from SP6 production - not the chemical conversion.

Having said that, that is based on today's pricing for SP6, which will eventually come down, though looking at the projected supply/demand charts, it's going to be a long time before it does come down.

Based on the below graphic, they are using the Fastmarkets Nov average SP6 price of US$7625/t.
Our DFS has it producing at an ASIC of US$452/t, even with the increased duty, the profit margin is well in excess of 10x the production cost, yet the chemical conversion is returning 29% - requiring a massive capex investment.

Of course this 29% is on top of profits from SP6, however if prices continue as they are, or get better, I'd be looking at using that capex to expand SP6 production, we have the Resource base to do that. Make hay while the sun shines.