(c) "I am far more worried about LLL holders as the Chinese can easily walk from the deal given the current state of the industry and with a non completed mine." ~ see above, the company executed a binding SPA with Ganfeng
(d) "With the new trouble in Mali, (global news) be prepared that the mine is delayed and money coming to shareholders is delayed also" ~ I think you are confused with what "money coming to shareholders" that makes up what payments Ganfeng pays Leo;
(i) tranche 1 payment isn't conditional on the mine being completed nor producing spodumene, whereas, (ii) the Lithium price will have an impact on the Training Product Sales Fee as it is based on gross revenue received from sales at the prevailing Lithium price.
(e) "If the decline lasts the Chinese buyer here will most likely have a contract exit clause or a revaluation option."
~ see above, the company executed a binding SPA with Ganfeng ~ see below (f)
(f) Then there was this: "You are at the mercy of your BOD and an agreement with the Chinese that you are not privy too." ~ that would also infer that you are not privy to any specifics in the agreement but have made statements that have gone from "have ensured" to "is there a contractual way out" to "can easily walk away" to "will most likely have" but here you are including these in your posts.
JoshuaL picks up on Kikkers' theme and .......
JoshuaL's statements: (a) "if it drops to much more I can see Ganfeng revaluationreconsidering their position as it will not be economical for them"
~ given that you make statements but can't answer at what price point would it be uneconomical for Ganfeng, obviously you have no idea at what point it would or wouldn't be. ~ also bear in mind that the processing plant design was amended on advice from Ganfeng, who managed test work conducted as part of the DFS update, and successfully converted into battery grade lithium hydroxide @ 99.5% purity to specifications meeting their Tier 1 customers.
(b) "interesting times ahead, IMHO if it does keep dropping this will affect tranche 1 payment and may delay everything"
~ given that you won't answer how or what your reasoning is to make this statement. ~ Company executed a binding Sale and Purchasing Agreement for the sale of Leo Lithiums remaining 40% interest in the Goulamina Project to Ganfeng for US$342.7 million with no mention any conditions tied to the Lithium price. ~ The non refundable deposit has been paid, the balance of tranche 1 is due October pending Chinese Government approval. ~ Factor in the Ganfeng International is setting up a US$1.2 billion fund to hedge the volatility of both Lithium prices and the US$.
Like Kikker, I can see where you have gotten yourself confused as to which Ganfeng to Leo payment will be affected by lower lithium prices, the TPSF (Trailing Product Sales Fee) is 1.5% of gross revenue received from the sale of Lithium products from Goulamina Stage 1, and as such will be calculated at the prevailing Lithium price at the time of sale. https://announcements.asx.com.au/asxpdf/20240508/pdf/063c56gjw9h080.pdf
(c) "do you believe if the lithium became uneconomical to process that GF wouldn't walk away and if they walked away do you seriously believe they would pay out tranche 1" ~ If the Lithium price gets to a point that it won't be economical for Ganfeng to produce spodumene from the Goulamina project, with an AISC of US$365/t (but I suspect this will be nominally higher) then the whole Lithium market will be in the toilet, specifically hard rock projects. Kathleen Valley with a circa US$220 higher AISC (and counting) will be in the toilet and flushed well before Goulamina. ~ you must be expecting the price of lithium to crash further (to below Goulamina being economical) in the next two months to be asking this.
* I will assume that "if they walked away" means they will not proceed with the Sale transaction? ~ see above, the Company executed a binding SPA with Ganfeng Between the 2 of you: ~ the list of of comments / statements / rhetorical questions made (highlighted by red text) is nothing short of scaremongering for reasons that only you two will know, but I suspect some level of self plaudits / gratification but it comes at the expense of shareholders misery.
LLL Price at posting:
50.5¢ Sentiment: None Disclosure: Held
(20min delay)