Ann: First Shipment to Launch NAL Concentrate Revenues, page-397

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Megafauna

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03/08/23

12:34

Post #: 69135900
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Originally posted by GT3loui: ↑

I like it...Albemarle also stated-

Sales in the company's Energy Storage division, which sells lithium, more than doubled to $1.76 billion. For the year, Albemarle expects the price at which it sells its lithium to jump nearly 30% from 2022 levels.

There is massive growth forecast in the ESS sector.
Not enough analysts are across this. Certainly not the analysts from financial institutions.

The lithium guys are tuned into this and have been predicting it for a while.

Great to see a producer is validating these forecasts with actual sales data to prove the point.

We should see a decent rebound in lithium price from here, increasing as the year goes on.

This will play into our hands, as the next 2 shipments will go to PLL, and SYAQ revenue shipments should be sold on the spot market when the lithium price is a lot more robust.

To be honest, I would be shipping all our current production to the PLL offtake while lithium is at a local bottom, and wewould receive fixed revenues from them.

Then later in the year, when the lithium price is forecast to recover, sell into the spot market at a higher price point to optimise our revenue.

Expand

SYAQ has no immediate need for cash and even if we do there is plenty in the kitty.

If the JV concentrates their efforts in filling PLL’s order first up, it should be clear air by about mid October, (assuming average output of 500 tpd between now and then).

By mid October NAL should have reached nameplate and for the remainder of the year be able to produce another 45,000 tonnes, worth about $AUD200 million if sold on the spot market.

As this will be in excess of OTA, the 50/50 provision should kick in.

If I have got it right, both parties should be very happy, (if not all the shareholders).

SYA Price at posting: 14.8¢ Sentiment: Buy Disclosure: Held
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