ASX Today, page-42777

In July, Liontown announced that it would be selling up to 100,000 Dry Metric Tonnes of ramp-up production (utilising ore that has already been mined - the cost of which has already been allocated against the capital expenditure of the mine build) to Sinomine International. In that announcement, we were advised that the pricing mechanism would be based on the Lithium Carbonate price.



At the time of writing according to the Shanghai Metals Market, the price for Battery Grade Lithium Carbonate was



The specific cost of converting the spodumene concentrate by Sinomine is not known but as the process is energy-intensive and involves several chemical processes, it is possibly in the vicinity of $3,000 to $5,000 per ton of lithium carbonate equivalent (LCE)." The converter - Sinomine's margin is also likely to be quite healthy but the actual is also unknown.

Of course, there are other costs like transport and shipping etc but looking at the above numbers it still seems clear that even at these lows LTR will soon start getting an injection of funds that will make the current share price look insanely cheap. When we get actuals I am expecting the upside to be very positive.

DYOR - Not financial advice - just my opinion.