Good News & Bad News, page-21060

Here's a thought,

Demonstration plant and market analysis proves up midstream salts, thus PLS approves commercial scale plant in late 2024.

P1000 is complete by end 2024, the 315kt spod offtake contract for POSCO/PLS JV remains in place, JV hydroxide plant production is qualified and at capacity by end 2024, for which PLS moves to 30% stake in the JV, thus 12,900 tonnes of hydroxide sales flowing into PLS coffers. Unfortunately spod prices have fallen to US$3,750pt and followed by a fall in hydroxide prices to US$50kpt .

In late 24, PLS board informs existing offtake contract customers that contract will expire at end of 25, leaving ~700kt of spod capacity to feed midstream salt production, and given SC5% is used in the process, available tonnes grow to 800kt on a SC5% basis, with 9kt of spod to 1 tonne of salts, therefore 89kt of 36% midstream salts.

Focusing only on revenues, given we do not know costs of midstream and POSCO/JV hydroxide. Though, cost of production will fall on back of expansion of solar array, less tonnes shipped to port, maybe a wind turbine or two. Anyways, lets go;

315kt of spod at $3,500pt = US$1.1 bill

12,900 Hydroxide at $50kpt = US$645 mill

89kt of midstream salts at $35,000kpt = US$3.1 bill

Total Revenue = US$4.85 bill (*1.4 AU$6.783 bill)

Worth hanging around, or not