Hi Daando37... There is a lot of misunderstandings floating...

Hi Daando37... There is a lot of misunderstandings floating around on Twitter at the moment. People are confusing a 31.9% LCE Chloride product with the 100% LCE reference numbers that are used in the DFS and then thinking that payability could be closer to 30%. This is completely incorrect.

I posted the following on Twitter to correct the misunderstanding:
A clarification here is that the 70% to near parity for LiCl intermediate product is on a ~100% LCE basis not for a 31.9% product. Nobody (not even Galan) is suggesting you could get 100% of the Lithium price by selling 1/3rd of the Lithium units - this would be impossible. What is being suggested is that you will achieve 70% or more by selling an intermediate product (on a 100% LCE basis). In a really hot market you will get up to 100% payability. In the past payability of 50-60% was considered normal but those days are long gone. We will never see 30% payability unless lithium is literally flooding the market and the bottleneck becomes conversion capacity.

And also this:
Again for clarity, nobody is saying you could sell Lithium Chloride which contains 31.9% LCE for 80%+ of the LCE price. In the case of the Galan DFS they have already converted their numbers to a 100% LCE basis so that people don't have to understand Chloride volumes and prices. However, this is also creating some confusion and people are mixing and matching 31.9% and 100% numbers. When Galan talk about selling Chloride at $20,252 this is on a 100% LCE basis. In reality their Chloride product contains 31.9% LCE so they are actually selling it for 31.9% of $20,252, which is $6,460 USD per tonne. Keep in mind that the same multiplier needs to be applied to volume. The Phase 1 DFS states a volume of 5,367tpa of 100% LCE Lithium Chloride. The actual volume of product will be 5,367 / 31.9%, which is 16,824tpa. So you can either say Galan is selling 16,824tpa of Lithium Chloride for $6,460 per tonne which contains 31.9% LCE. OR you can say Galan is selling 5,367tpa of Lithium Chloride, on a 100% LCE basis, for $20,252 per tonne. In the DFS Galan just expresses their numbers on a 100% LCE basis so that people don't have to understand actual chloride volumes and prices.

Keep in mind that if you are getting 30% payability on an intermediate product such as Chloride then the same would be true of an intermediate product such as Spodumene Concentrate. If Spodumene Concentrate was currently getting 30% payability, hard rock would get absolutely slaughtered and pretty much all mines, including PLS, would simply stop producing.

I hope this helps.