Ann: PLS: Share Sale Agreement to Acquire Altura Lithium, page-43

Size matters, (economies of scale).

Credit card like interest rates on project debt. If any organization were to step in, the required bail-out so AJM had a clean slate would be in the tune of AUD$350 mill (pay off debt, pay off unsecured creditors, working capital, funds to fix the plant recoveries). All without guarantees of survival.

Recoveries were hurting AJM, last reported AJM recoveries were at 60%, thus cost of production on an AISC basis was $450pt, while the plant was running at near nameplate capacity. Last reported recoveries from PLS were at 75%, which was achieved at ~60% nameplate capacity for an AISC of $350pt. This comparison exposés the issues with the AJM plant, noting the $100 AISC differential equates to $20 mill per 200kt. Assuming your AISC is $350pt, there's a small profit of about $8 mill when spod prices were at $390pt (per 200kt), as opposed to a loss of $12 mill with AISC of $450pt.

If you were Aust Super, which is the lowest risk horse to back based on the 3 above metrics. If you were new to AJM & PLS, which horse would you back with your hard earned?