AVZ Peer Transparency, page-51

@Scarpa , Tianqi in a 2017 doc indicated their process flow sheet for spodumene concentrate grades.

Notably they deploy flotation circuits for their one and only chemical grade spodumene concentrate ‘SC6’.

The relevance to AVZ is............. if AVZ finds that there is firm economic underpinning to only a DMS plant at the initial start-up phase, then why does Tianqi with similar and perhaps overall better LiO2 grade install a flotation circuit?

The simple answer from searches is that Talisons only ‘sells’ CG SC6 to Tianqi Lithium and Albermale, it’s beneficial shareholders. Whereas AVZ would be selling to converters with specified grade parameters. But what I also wish to allude to is that perhaps while prices are low and who knows for sure going forward, why make a premium product (with flotation etc) when the market is adjusted to sub-par, as in the below specs of Talison standard chemical grade SC6?

If battery grade has little credence or respect in the China domestic market why try harder to make a better product than is necessary? Unless of course there are credits for being optimized in a to Tianqi standard way? Just thoughts over my VB coffee mug.....

This CG SC6 by Talison is produced for a suite of lithium chemicals. What is not clear is if Tianqi makes Industrial and battery grade carbonate and hydroxide from this SC6………. or from what sources? They have a number of resources outside Greenbushes.

The other relevance to AVZ, is would AVZ depending on customer interest elect to do chemical and technical mine pits in the manner Talisons employs?

All IMO & DYOR