ASX Today, page-41235

Sorry what is this premium product?
Not too long ago there was a strong preference for coarse spodumene .. downstream. Lower moisture content = lower refining power consumption, pretty simple. It's only recently that fines have made more of a presence downstream.

The whole sc4 vs sc6 or whatever is a bit silly. In the current market the adjustment to price is fairly linear, what is not linear is the impact to cost and lithium units you get out. So if it makes more economic sense to produce and sell 5.5 as opposed to 6% there is no shame in doing so. The same applies to ltr, if they can product 5.5 at higher recoveries and therefore more li units, go for it.

As to why they will be selling at a loss, because they will, at least initially, be selling into the same spot market all others sell into and product will be going to China alongside all other spodumene. The offtakes only commence once ltr declares commercial production. They won't be doing that until they hit a production run rate sufficient to deliver into the offtakes (min vol offtake requirement).

The company is doing what it can, where spod price is today is not a fault of their own and trying to predict where prices will be in 12months is a mugs game as time has shown. They should continue doing what is within their control, build and operate.

Aimo