Yeah definitely true in how the market responded yesterday.But what the Market has so far failed to recognise is that the figures I have gone over so far in the PFS , is that it has failed to pick up on the fact that the whole NAL operation has got over the line with a near ' Doubling ' of its LOM on ONLY 33 ish percent ' blending ' albeit lower than other Li % players but from a ' Consistent ' contiguous Ore body at Authier where extraction can be sdt about in a confident , measured and orderly fashion.And so it ( NAL ) has achieved this without any further re-classification as SPLIT has pointed out in regards movement into the ' Proven and Probable ' categories which we know will occur over time.What's further interesting , is it the fact that it would seem that the $A costs are ' inclusive ' of haulage and other costs of around A$185 per tonne which together with the A$118 comprise the A$303 per tonne being derived from this application of consistent ore feedstock from Authier which has ultimately gone onto reduce the ' average ' LOM A$ concentrate cost for Authier's ' Notional ' REVENUE to a figure which would otherwise be around an equivalent .49 cent AUD to USD exchange rate as calculated at the very upper end of the US$900 ceiling provided in the Piedmont Offtake.So if the Aussie currency plateau's or drops significantly as the USD strengthens ( and as we would normally see for USD denominated commodity prices ) , we have tremendous ' Sensitivity ' gearing to the AUD v USD cross rates...with the Canadian Dollar normally following the same directions as the Aussie.On the other hand , if we see a temporary strengthening of the Aussie , we have this natural ' buffer ' of having this Authier ore extending the existing resource profile of NAL out to DOUBLE which is then reflected in the equivalent LOM average sales revenue per ton.So effectively the pre-tax EBIT or theoretical EBITDA is around 6 times the Authier cost base at the concentrate level.And I think that's damn good really ....especially that it is virtually ' locked ' in now for EVERYONE in the Quebec Lithium Industry to get their heads around.Then there is the separate aspect where they make the point that the ' product ' will be converted to lithium Chemicals within 2 years. Which is what I had been saying all along that Piedmont would enjoy at best 1 year of spodumene offtake under the current arrangements.But don't get me wrong , they will be completely wrapped in the costings and pricings as well , and more than happy to move forward to chemical's conversion I would think.Don't forget as well , that 25% of the approximate A$303 per ton will be borne out by Piedmont. So that's then roughly an Authier spod cost at concentrate level of A$227 per ton.I would imagine that even back in the days of AJM , they would have loved to be in a position of having such a low cost of production of concentrate.And so from there , I don't think Sayona is going to have to stand on its head or do handstands or stride jumps ( wish I could do those right now .....lol ) in getting someone to put their hand up for a starting $100 million of capital funding which for all intents and purposes with an IRR of 140% can be paid back in a matter of just a couple of years.
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Yeah definitely true in how the market responded yesterday. But...
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