The JV has decided to produce sc5.4 and for SYA this has allowed them to get to nameplate which means considerably more EBITDA; the $90 is relatively trivial. It is better for SYA producing 226 of sc5.4 rather than say 190 sc5.8. The JV gets to sell 113kt rather than 77 kt and SYA gets 75%.
The reduced EBITDA for PLL’s offtake is offset by their 25% of the sales of 113kt rather than 77kt.
It’s a good deal for SYA
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