General Discussion Topics, page-1747

Both AJM and A40 had binding offtake agreements. Both had their plants built and ramped up. Both had pricing agreements and as far as I'm aware the prices were pushed down despite the agreements in place when lithium prices retreated. Both faltered. Costly mistakes have been made.

What SYA may ultimately need is for any off-takers to honour agreed pricing mechanisms in case of a lithium price downturn and for the offtakers not going bust themselves. Perhaps what lithium needs is to have an option for hedging arrangements available to producers.

A minimum floor price of $500 today may be fine but with inflationary issues it may not be so fine in 5years' time (unless it can be adjusted upwards to take increasing production costs into account). Looking at commodity prices, all miners are subject to fluctuating prices, supply/demand issues and exchange rates and many have gone bust on a downturn.

The demand for lithium is obviously going to increase and SYA has a resource base to help with supplying that demand - I really hope that whatever plays out in getting it to become a producer won't in time be met with the same fate as the ones mentioned. At company level I hope that any future debt obligations will be met with positive outcomes.

Have a nice Bday.