Compelling opportunity, page-5091

Hey Thoreon,

It is a great point you raise and it does perplex me that the market has not fully reacted to spot prices (yet).

One possible explanation is the disconnect between the spot market and the reported prices of current producers like Allkem, SQM & Pilbara to name drop a few.

Whilst the Spot Market is a record highs, long term legacy contracts (With unfavourable pricing formulas between buyer & seller) has meant we have seen a lag in reported prices for current producers.

Take Pilbara Minerals for Example, in their December Quarterly Report they averaged US$1,800/t between October-December last year, yet the spot price was near US$3,000/t by Christmas. Pilbara have indicated that this current quarter they are expecting to receive between US$2,600-$3,000/t.

I look forward to next month when Pilbara and Co report their financial results for the March Quarter, the current producers should be reporting massive profit margins (For the 1st Time) which will give the market more confidence that the current spot prices are impacting the bottom lines of todays producers.