@LStruthers
I dont think only a loss was factored in. IMO care and maintenance is still partly factored in. On the basis that we have not shown a quarterly yet that we are producing at breakeven or at profit. Granted if we didnt have the capital or alt project drill costs we may have made profit. But in a market that we are in SH want certainty around the continue of operations and little to know cash burn. Unfortunately SYA & PLL have been caught in the wrong place at the wrong time in terms of large capex ramp up just as a market downturn in lithium hit. Literally 3 months after spod prices started to slide we started NAL up.
So IF we make it through this next 6 months it will speak volumes about SYAs ability to not only avoid liquidation but also avoid a C&M similar to Core. Which when things turn around are far more advantageous than if you have to re-deploy and rehire staff/contractors all of which take time.
The figure I gave of 1200AUD factors in a 200AUD a ton decrease in Fob cost from last quarter, its reasonable given we will likely still have additional costs to ordinary operations with regards to some of the following:
The pouring of concrete walls and equipment foundations, together with all backfilling was completed during the quarter.
Transfer towers are nearing completion, and the silo chute and bucket diverter were installed during the November planned
shutdown which was a critical milestone. Most conveyors have been assembled and lifted in place, including the transfer
conveyor, main conveyor as well as the belt feeder and reclaim conveyor. The dome arches were all erected during the quarter,
with the fabric to be installed over the end walls in the following quarter.
And
NAL evaluated the addition of a refeed system, with the project being fast tracked into construction. The refeed system is
anticipated to be completed by the end of March 2024 and will be considered as part of future production plans.
And
Tailings Storage Facility 1 (TSF1)
The existing Tailings Storage Facility 1 raise project aims to increase the tailings storage to approximately 1.9 million cubic
metres of storage capacity to support process plant production. At the end of the quarter the project was close to completion
with only minor works to be completed in 2024, including geomembrane installation and minor civil works on the north and
south spillways.
And
Jaw Crusher C-150
The Jaw Crusher C-150 project is designed to stabilise mill throughput by minimising blockages in the crushing circuit and
minimising use of the rock hammer on the ROM pad. The environmental approval permit was granted during the quarter, and
all containers have been received at site. The project is being evaluated for completion in 2024 or 2025, to support ongoing
cashflow management priorities.And
Morella Lithium Joint Venture Project
Sayona holds a 49% equity stake in the Morella Lithium Joint Venture, which comprises lithium rights to six tenements in the
Pilbara covering 426 square kilometres and two tenements in South Murchison covering 48 square kilometres. Morella
Corporation Limited (ASX: 1MC) is the manager of the joint venture.
A total of 66 RC drillholes for 3,754m were completed at the Eastern Pegmatite 2 prospect within the Mallina project. The
drilling results have confirmed and improved the understanding of mineralisation previously identified within the Pegmatite 2
area, with 42 holes intersecting lithium mineralisation above 0.5% Li2O1 The Pegmatite 2 area is host to a 1.5km long pegmatite
swam with the latest drilling confirming pegmatite thicknesses up to 20 metres. Additional drilling is planned over extensions
to the identified mineralisation as well as testing new targets within the greater Mallina lease.
So I just dont see our Fob dropping below that of our saleable concentrate price at least not in the next quarter and granted I understand it was pulled down by less sales in the last quarter as we built up our inventories.
The spodument price has also only just started to march in late February. Before that our spod price per spot market was about 910 USD again not what our JV partner is paying our JV for it (closer to 810USD). An that spot price is for 6% so at 5.5 your looking closer to 820 USD on market anyway (not much better than what our JV partners price cap is).
Again all IMO.
(20min delay)