A very good presentation from Rodney. A good point to note for...

A very good presentation from Rodney. A good point to note for new investors is the comparison between spodumene cost and carbonate, refer to his 3rd last page. Effectively, the break even point for carbonate converters assuming a SC5.3-5.5 price of $4k is more or less $40k.

This price allows for approx 7.5t of spodumene per tonne of carbonate. If you assume that all margin goes to the miners in the near future, then effectively every $1000/t increase in spod equates to a $7.5k increase in the carbonate price for non integrated converters.

Ie:
carb @ $47.5k = spod @ $5k
carb @ $55k = spod @ $6k
carb @ $62.5k = spod @ $7k
carb @ $70k = spod @ $8k

If we begin to see pricing agencies reporting carb trading at mid 50s I think it’s safe to assume the spod price will track between $5-6k for PLS.

The Jury is still out as to whether spodumene is setting the carbonate price or vice versa, but it will interesting to see how prices relate over the next 6 months towards a busier buying season as inventories are now quite low.

GLTAH

Pap