Hi @DaisyA I’ve been thinking about the undisclosed LHM-driven...

Hi @DaisyA
I’ve been thinking about the undisclosed LHM-driven pricing for Ltr spodumene. Without this slide I was wondering how much profit Ltr allowed for converters. Will the pricing be sufficient enough to achieve fair sharing of profit such that all parties will work for the common good? And I guess the new slide is giving me the answer- thanks for pointing out. TO mentioned that the offtakers will pay based on LHM price and they can take to any converter of their choice- it actually rewards the offtakers too because they can pick the best conversion price offer, brilliant pricing mechanism

That’s an interesting addition.
At $75k, spodumene is $6,458
I’d assume a 34% margin allowed to converters in the example.
If the LHM price is $50,000, less $4,300 conv costs, divide it by 1.34%, that’s about $34,104 then divide by 8, that’s $4,263/tonne
At $29k dfs price, SC6 will be $2,304 flowing the same formula. (Not $1,392 pricing in the dfs)

therefore,

1) Ltr still gains $1.3 billion annual profit at $29k/t - cash machine

2) significantly, Ltr will get $2,304 (a much higher price) and not the $1,392 that was modelled in the DFS