ASX Today, page-41722

I keep coming back in my thinking to a few things...

1. The timing of our entry to production being as quick as it could have been since discovery puts us in an enviable position to meet future demand, and also grow our production to match demand (which is what PLS is pursuing with its P2000 project). That extra tonnage comes with the benefit of lowering our "all in" costs and will enable us to be profitable through any cycles. It's the same concept as was used by the Australian iron ore miners to become the lowest cost global producers. We have the benefit of high grade low impurity ore that will also provide comparative advantage to lower grade deposits. Once we reach full ramp up we will be profitable at current prices and very profitable at USD1,500 or higher for SC6. "Lowest capex intensity globally" for the increase to the targeted 4m tpa throughput according to TO.

2. The price of lithium and quality are the important factors for the midstream refiners and down stream battery producers...for refiners the quality and consistency of our concentrate will enable it to be processed more cheaply with better refining outcomes, and therefore over time our Spod concentrate will become a more desirable source....for down stream battery manufacturers a very high price for lithium would potentially drive substitution in some applications imo. Right now with lithium having highest energy density and therefore being the "go to" product for cathode is what we want over the long term. Interestingly, the previous noise about sodium ion technology replacing lithium seems to have subsided since prices reverted to a more sustainable level.

3. Our jurisdiction and our ESG credentials will be important over the longer term. There are numerous examples of failed projects around the world. While Australian producers can produce their Spod at the low to mid range of the cost curve, then new projects in less stable jurisdictions will struggle to make a case for their development. If the refining near monopoly of China can be challenged over time, markets will be more transparent and the cream of quality like LTR will rise to the top.

Of course there are other things but these are the ones that provide investing confidence, especially now that any question about financial stability have been answered.

Regards
DF