Ann: Spot sale linked to hydroxide chemical pricing, page-29

Responding to Mr.Green.

I think your logic is sound. However, I don't think we get the short end of the stick. We received high spod prices when hydroxide spot was high. Hydroxide continues to fall, so everyone think any purchase of spod at todays price will result in a loss when its converted. It seems to be a fair arrangement. PLS receives a sale, and could receive a higher price is sentiment changes and hydroxied prices rise.

Average time from sale for PLS spod to be processed = 3 months.
This sale is for March.
Therefore the product will be processed in June/July.

Considering sentiment for Chinese EV sales is so negative, regardless of BYD aiming to double EV product and Tesla more than 50%. I imagine sentiment will be positive and an uptick in hydroxide/carb prices for that period of time.

I think prices are dropping, but this arrangement is great in that it stems any shock from changes to prices in spod, whilst leaving the door open for senitment to change and actual sales of EV to flow through the manufacutring sector and consume all those spare batteries and available lithium.