Lithium pricing mechanism is a bit odds at the moment, more...

Lithium pricing mechanism is a bit odds at the moment, more likely early stage of iron ore pricing. Majority volume are executed at offtake/contract price (i.e. quarterly adjustment), small volume are sold at spot price. Then newish China lithium Futures price. Currently contract price is still very high, then fast falling spot price; and even crazy Futures price, dropped 70% last week, started to bottom out. At current situation, Leo's offtake pricing to link spot and contract lithium carbonate and hydroxide prices are looking favorable.

The low of the Futures price probably indicate the worst price, as last week's low, implied spodumene concentrate 6 price is at around US$2,000/ton. This price, is still extremely profitable for Goulamina project. Canaccord put price target of $1.90/share based on SC6 US$1,500/ton, $4/share based on SC6 US$2,500/ton.

Ganfeng comments on lithium spodumene concentrates, in short term still remain tight supply.