Ann: Liontown signs Offtake Term Sheet with LG Energy Solution, page-203

The anns. about LG yesterday was only a term sheet but not an agreement.

Why not directly a "Binding Offtake Agreement"?

This is seller's market. LTR has the power to make an offtake agreement even though the other party is the world's largest power in lithium battery supply chain. (LG is bigger than Tesla and others because it produces all components of a battery cell from refining lithium spod concentrate to making cathode, including battery cell and module itself. Tesla has only making battery cells just recently while buying the cathode material and other components -anode, separator and electrolyte- from the producers).

LTR does not need to make an offtake agreement if the price is not a fixed price (in LTR's advantage) by today's conditions. The non-fixed price (with a floor price) offtake agreements are only needed for financing the project by the banks. The company presents the offtake agreements made with reputable buyers to the banks, then the banks would satisfy to finanse the project. In LTR's case the project is already financed. So why LTR is making the term sheet agreement is only tells me that LTR is threating the T/O buyer by these terms sheet agreements.

This offtake arrangement does not have much value for me either, however it has a huge value in terms of giving a message to the T/O buyer.

I think LTR is still giving the message to T/O buyer (BHP?). I think there is a big negotiation war between LTR and the T/O buyer atm. And it's getting denser and denser every week IMO. The lithium prices are now at record levels and there is not sign of stabilising soon.

LTR night be saying by this offtake arrangement; "This is only an offtake arrangement, I have the power to make these contracts with largest companies in lithium and battery supply chain, you will see soon, buy LTR at the price we ask or I am going to more of them in offtake agreements form but not arrangements".

So, the probability of selling out the project is getting more chance now, but at what price is the question. I think LTR will make more term sheet agreements with others (including WV and BMW) very soon to put more pressure on the T/O buyer unless the T/O buyer make its decision to buy the KV project asap.

BSCP (Bridge Street Capital Partners) new target price $3.07 is not our target anymore. We can compare LTR's market value only with PLS. It's our benchmark even though LTR's project has many advantages over PLS's project. Also, LTR has the potantial to increase the resource tonnage over 250mt at much higher grade than PLS's project.

PLS's market cap is nearly $11.5 billion now.
That gives a value of min. $5 per share for LTR atm.

I don't know how much TG is asking for.
$4 would be cheap, $6 would be OK.

If we can't get $4 I wouldn't sell my shares, I would prefer to wait for the production days, 2 years more. Then we would be able to see $10, $12 maybe $15.

Why not wait for 2 years and make 700% profit from here with shares in a safe company at a safe location.