Q-1-2023 Spod sales of AKE (Allkem) from Mt Cattlin mine in WA...

Q-1-2023 Spod sales of AKE (Allkem) from Mt Cattlin mine in WA indicates $6500/t. They actually can't make SC6, they can only produce 5.2% spod, and they sell it for $5700/t.

They say it's equivalent of SC6 at $6500/t but that's not right either. The sales price of SC6 would be much higher than that however the AKE management exactly like PLS management (as they do the same) trying to show their shareholders that it's not worth it to produce SC6.

However the reality is they can't produce SC6 at a low cost to make same profit margin. Therefore the fact is they sell those 5.2% spod to refineries in China which produce lithium carbonate but not hydroxide IMO. Therefore they have to compete with currently cheap lithium carbonate price in China.

So this kind of low grade and quality spod sells at a low price in Chinese market.

Btw, Mt Cattlin mine was only 12mt resource and it's now at the end of it life. They are playing the last minutes and don't have to good quality ore to make higher spod concentrate.

LTR will produce SC6 and will have no problem to sell it at a premium price like Greenbushes.

That's the main reason Albemarle which owns the 49% of Greenbushes wanted to buy LTR but PLS.

There are many other reasons why ALB wanted LTR as well; the second most important reason is the low impurities of KV resource. ALB knows Pilbara region because they own Wodgina mine (JV with MIN) there. They have very high impurities in their ore like PLS's ore). The ground water is also highly contaminated with other minerals.

Anyway we discussed all these things here before. Now you are seeing the fruits of that having that knowledge if you hanged on to your shares all along the way.

It's about the quality, but not quantity.