No way in regards to profit at these prices. Not until the full...

No way in regards to profit at these prices. Not until the full capex is out of the way.

Most of our spod will be going to PLL at 900USD a ton at s.c 6 grade.
Discounted to about 810 USD at 5.5 maybe slightly more if we are now in the realms of sc.5.7

Our Fob cost was 1397 AUD which is about 910 USD. It also doesnt include Freight, Royalties & Depreciation.
If you then split that with the JV % SYA get 75% so

810 USD at 75% - 608 USD revenue
910 USD at 75% - 682 USD expense (excluding some other expenses)

At present I imagine management are simply trying to get the operation to breakeven to avoid a C&M scenario moreso than turning profit. Though I do imagine our capex should be lower reducing our overall operating cost.

Even if you marginally decrease the Fob cost to say 1200AUS - 780 USD
780 USD at 75% - 585 USD expense (again dep, royalties and freight costs not yet included).

Likely to be a loss this next quarter but hopefully it will be a significant decline in cash burn than last QTR. Id be happy with that if we are also pairing it with declines in overall Fob from 1395 down towards that 1200 figure. As it will mean the operation is moving the right direction.

Declines in production cost are more important because they impact our baseline across both SYA spod & PLL spod. While the lithium price increases will be welcomed they arent as advantageous due to 50% offtake going to PLL at 810USD regardless of increase. So its only a marginal benefit pending we reach all OTA to PLL.

IMO profitability is more likely 1st QTR Sept 2024 (1st quarter 2025 fy) but that again comes down to how we go between now and then in terms of cost reduction and hopefully spod price increases.

All IMO.