Ok that says a lot and explains our share price.For PLL offtake...

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jasonken17

78 Posts.

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23/04/24

11:08

Post #: 73472338
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Originally posted by Odes: ↑

From just after the 49 minute mark... this should hopefully settle it?

KP: "In terms of the offtake agreement, with the offtake agreement, the offtake agreement is life of mine. What the offtake agreement fundamentally says is that the material underlying our agreement would go to a jointly owned chemical plant, if there is one. So instead of us taking our material and selling it to our current customers, you know, we would let those customer relationships or contracts kind of run their course. But beyond that, rather than renewing those relationships with third-party customers, we would sell the material into the jointly-owned chemical plant. But the offtake agreement itself would remain in place. So that's, that's a life of mine offtake. I think there's, you know, there's a general, you know, a broad misunderstanding of how that works kind of in the market."

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Ok that says a lot and explains our share price.

For PLL offtake even when there is a chemical plant SYAQ will still, and for life of mine, be selling first 113k tpa spod to PLL for cap price $900.

PLL will sell that 113k tpa to chemical plant (owned by SYAQ and 3rd party) at whatever market price based agreement struck amongst parties.

So SYAQ will always be hobbled on selling 113k pta spod to PLL for life of mine at cap price of $900.

Wow, I knew the PLL OTA agreement was bad, but capping for life of mine, can’t remember what this is, but say 40 years? Costs of mining spod go up. Inflation is real. So no inflation adjustment at least in a life of mine capped off take price. Horrendously bad.

Please tell me I’m wrong.

Last edited by jasonken17: 23/04/24

SYA Price at posting: 3.4¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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