This renewed Lithium wave is just what we need now. Its being...

This renewed Lithium wave is just what we need now. Its being powered by recent German, Greek, Netherlands and soon UK and others EV subsidies. It may be just the tonic we need to convert the POSCO JV and refinance our Nordic Bond debt finance with Ganfeng and/or other strategic partners, for the Stage 2 (&S3?) development.

GANFENG - Jun17 Quarterly
Ganfeng Lithium has agreed to provide financing support for up to 50% of the Project’s Stage 2 development and capital costs and, upon financing terms being agreed, will be offered up to a total of 50% of the additional production from the Stage 2 expansion.

GREAT WALL - Oct17 Offtake ASX Ann.
Provided $28m of much needed capital in their original investment back in 2017. They got an offtake of 75,000tpa and a further 75,000tpa, if they provide $A50m for PLS's Stage 2 expansion.

Great Wall have slipped out of PLS Top 20 now. They took advantage of slow Ganfeng uptake to secure Stage 1 offtake of 20ktpa of SC6.

POSCO - Mar18 Offtake ASX Ann.
They provided a capital contribution of A$79.6M equity investment at A$0.97 to secure the offtake of 80ktpa.
30% Equity Interest in downstream JV for extra 240ktpa

The price of SC6 was over USD1,000pt when these binding agreements plus options were originally agreed upon.

No doubt they all still want our SC6 but I don't think the option exercise enticement will be so sweet.

POSCO have announced their plans re Gwangyang LiOH Plant to be in production "in 2022". There is no guarantee POSCO will sign off on the JV ... but if they don't ... CATL (and Yinbin Tanyi in particular) will swoop on that Stage 2 offtake, like a seagull after a chip.

Still, Ganfeng and/or others may well provide finance for Stage 2 expansion as mentioned in the PLS ASX Ann. of 1Apr20: "Available options to Pilbara Minerals may include restructuring the terms of the existing Bond (for example, extending the maturity date and/or delaying the start of the amortisation period and/or changing the dates for call option premia) or refinancing the Bond with a different debt instrument, including through the participation of its customers or strategic partners in an alternate financing instrument, or a combination thereof."

http://www.pilbaraminerals.com.au/site/PDF/ba1a7da1-e86e-4417-b567-8d9b52c542d2/MarchQuarterOperationsUpdate

Will our Nordic Bond be refinanced with Ganfeng together with Stage 2 expansion funding?