Just a bit of info on the 5.4% spod and PLL contract. It is true...

Just a bit of info on the 5.4% spod and PLL contract. It is true that this will likely be the case

But before everyone goes wonky on this, let's check out what that actually means in terms of out SP which at the end of the day is the most important thing.

on an annualized basis we will sell at $810 instead of $900 for 113,000, this equates to a difference of $10.1 Million dollars. Now spread that 10.1 Million across 9 billion shares and it becomes .0011 per share. If you apply a 10x PE to this you get 1.1 cents per share.

It is my belief that the exact same treatment will happen to PLL when they sell their portion to LG and Tesla but the effects will be much greater.

If we use recent spot price of $3740 for SC6, PLL would be discounted $374/t which equates to $42,262,000 in lost revenue. If we spread this loss across the SOI of PLL (19.18m) we end up with a loss per share of $2.20, Using the same PE ratio that I applied to Sayona of 10x would be a negative impact of $22 per share.

This may be one case were having a high SOI is helpful.