Not exactly. If there's a carbonate facility then all of...

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Norbeto

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25/04/24

18:03

Post #: 73512432
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Originally posted by Langleybc: ↑

Clarification Required if anyone can help

So 113,000 tonnes (or 50%) of spodumene produced by the Sayona Quebec JV (75% Sayona/25% Piedmont) will be sold to Piedmont Mining forever at U$900 per tonne.

According to the recent KP interview on Lithium Ion Rocks, Piedmont Mining will be able to sell that 113,000 tonnes to the JV's NAL carbonate plant (if one is built) at standard market rates. IE they buy from the JV at US$900 per tonne and sell back to the JV at US$1300 per tonne.

The JV then processes that 113,000 tonnes of spodumene and produces approximately 15,000 tonnes of LCE. It then sells that 15,000 tonnes of LCE for the market rate on the day. ie $15,000 per tonne.
The $15,000 per tonne of LCE revenue is then split 75% Sayona Mining and 25% Piedmont Mining.

Does this sound right to everyone?

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Not exactly. If there's a carbonate facility then all of the sc6 will be preferentially delivered to the plant. As per the technical study around 186,000 tonnes will be needed to convert into just over 23,000 tonnes of Carbonate.

IF... Piedmont wanted to take up their offtake right, they would purchase at $900usd and as your say, sell back to the JV for the going rate.. That doesn't really make much sense to me but I guess it is a possibility, but definitely they won't have 113,000 tonnes to sell to the JV... more like 40,000 tonnes.. it would be more likely to be converted at Tennessee Hydroxide

Last edited by Norbeto: 25/04/24

SYA Price at posting: 3.4¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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