Certainly a smart move for what they have done, and again shows...

Certainly a smart move for what they have done, and again shows what good management can do. But to correct these statements, what you both are quoting includes State Government royalties - royalties here in your table predominantly relates to the 5% royalty on spodumene at State level plus the royalty they were meant to pay to the company. If you believe this number as relating to only the royalty you no longer have to pay, but you still must pay State Government royalty, the spodumene price would need to be north of US$5000 per tonne for 6% grade spodumene.

The Ann itself says royalty savings are US$10 per tonne. What you have got out of by paying it out is a 1% royalty on gross sales, and A$0.50 per ore tonne of feed into the orefeed facility. Now at 1.4% Li20, which is the average MRE grade, you need roughly 5.5 tonnes of ore to produce 1 tonne 6% grade spodumene at a 80% recovery rate so the ore feed royalty is A$2.75 per tonne. At 72c exchange rate makes this fee is about US$2 per tonne of 6% spodumene.

If the spodumene price is US$800 per tonne, then the 1% gross royalty is US$8 per tonne. Add the US$2 per tonne you get US$10 per tonne.

Additional profit per year at 350,000 tonnes spodumene 6% concentrate production becomes US$3.5 million. Where the real benefit is is in expansion, which is probably why they a doing what they are doing.

The way to look at it is the 6% grade spodumene price in the DFS is expected to be revised upwards to US$800 per tonne IMO, based on the fact they are stating the removal of the royalty reduces opex cost by US$10 per tonne on spodumene sales (6% equivalent). You still pay State Givernemnt royalty which is what your table predominanttly shows. I won't comment on the spodumene price assumption I have derived as a long term price.

All IMO