General Discussion Topics, page-45958

Yep and coming back to the concept of him ( KP ) declaring ' Early ' production cashflows coming from Quebec spodumene production - Again the only way he can gets his 25% cash ....PLUS his 16.5% odd % of Sayona's 75% Quebec distribution of either spodumene sales and / or the increased Carbonate sales ( not EBITDA ) is to either have a ' Dividend ' for Sayona Quebec declared .......OR/ to re-invest the ' Free Cash Flow from the Sales into that ' THIRD ' LIOH plant he speaks about doing in Quebec.

So in either case of a ' Dividend ' distribution if we just use round numbers of 200,000 tonnes of nameplate SC6 production at ' SPOT ' price ( say US$2,800 per ton ) , that could mean a current conservative approximate amount of sales of almost a $US 560 million in sales .

However if you go for the dividend payout scenario on that measure , you're only looking at around 2.1 cents per share ( using approx 8 billion SOI and 30% net profit margin ) . So in this scenario of a cash dividend payment , Piedmont would only receive an early 2 year cumulative Cash Flow from a dividend payout at the end of year 2 in 2025 of around $222.6 million.

However if Sayona was to immediately move to Carbonate production and pricing from that SC6 from those same FIRST 2 years production , Piedmont would be looking at an approximate free cash flow availability for its contribution towards a THIRD LIOH of around $2,177.5 Billion in total , of which their TOTAL share based on the same assumptions of 8 billion SOI and the 25 / 75% split on Sayona Quebec PLUS the rough 16.5% economic interest in the 75% Saona share of free cash flow of around plant in Quebec of around $907.8 million ....which is Virtually the entire projected cost of a Whole ' New ' LIOH plant on its own........never mind Sayona's share of free cash flow from sales of Carbonate for those 2 years of around being around US$1.280 Billion.

So you can see how they ( Sayona & Piedmont ) could BOTH do their own thing in Quebec if they wished to , but certainly NOT if Piedmont was only to receive a $200 million distribution after those FIRST 2 years. Not enough Especially after paying their share of associated costs of operations as well.

But if they go in together on any future plans in Quebec off the back of the first 2 years of Carbonate sales at roughly US$62,500 per tonne ......well then the sky is almost the limit if they indeed join forces.

Either way , its in Piedmont's best interests to ' Leveraged ' the highest possible ' Distribution ' outcome from the JV for even its launch of its 2 year proposed LIOH ' 2 ' plant in ..........Buffalo .....