Ann: SYA: DFS Confirms NAL Value With A$2.2B NPV, page-5

The DFS is a bit of a non event really.

Usually they are done to determine the feasibility of building the project, or to get finance, but in this case the plant is already built & operating.

Once in production companies are valued on their current/projected profitability not on the DFS.

Although the DFS gives a guide as to operating costs etc, you don’t see them mentioned in Broker reports on producing companies eg PLS, Core etc.

Reading the SYA threads, they all seem to think our offtake will come to an end in H2 2026.

The DFS is quite clear on how the offtake works.

Yes SYA’s DFS assumes a downstream plant will be operating as a JV from H2 2026.

The DFS makes lots of assumptions including the price received for SP6 - of course they don’t all play out.

Firstly on P2 it clearly states any downstream projects are subject to JV approval - ie both parties must approve it.

It goes on to mention the ceiling price of $900/t for SC6 over the life of the facility. The DFS assumes 5.4 to 5.82% and there is a “quality true-up” so we will be paying a bit less than $900/t and our volume will be slightly higher than 50%/113kt to make up for the lower grade.

The DFS goes on to say how the offtake would work SHOULD the JV pursue the downstream plant.

It says “In that operating scenario” the offtake goes to the downstream plant & what’s left over goes to PLL under the initial offtake agreement.

Clearly this scenario only plays out IF both parties agree to construct the downstream plant.

The statement below from P33, is merely stating the DFS assumes a downstream plant from H2 2026. (it has to assume something).

That may or may not happen.

IMO PLL would have rocks in it’s head to give up such a lucrative offtake to build a conversion plant.

The money at the moment is in Spodumene concentration, the converters aren’t getting big margins & it is very capital intensive.

Interestingly the AISC is C$987/t and we'll be buying SC5.8 for a bit less than US$900/t, not much profit in that for SYA.