By Klein’s measure on the Ganfeng/ AVZ Offtake as more like an MOU by not being announced by Ganfeng, then, PLS’ May 2017 Offtake with Ganfeng (incl. it’s material equity placement) means nothing more than a MOU as well, because both AVZ and PLS Offtakes with a Ganfeng were not announced on the SZSE Ganfeng is listed on!!!
A serious blunder in logic by Howard Klein, showing his bad faith clearly
By contrast, When Altura did an off take including ‘prepayment’ with Ganfeng , it was a producer, and a supply readily available and, therefore, is it the case that Ganfeng announcing the AJM offtake November 2018, on SZSE is because it passed a regulatory test of materiality? Different exchanges different measures.
So Howard Klein missed all of that precedent with PLS to mislead and confuse on AVZ‘s off take with Ganfeng. All I’m saying is on the SZSE as evidence. Go check it out.
There are other points but PLS forum is not the place.
Lithium Sulphate
Howard Klein also tried to disparage the lithium sulphate pricing AVZ is pioneering
if he really was earnest he would note it is lithium sulphate monohydrate not lithium sulphate, (AVZ uses ‘primary’ lithium sulphate for this mono hydrate 80%)
He would also note that the market price referencing AVZ used for primary lithium sulphate was accurate for lithium carbonate/hydroxide based on Price reporting agencies like Roskill and Fastmarkets’ tabulations. Page 86 of AVZ’s DFS shows Roskill’s forecast for technical grade lithium carbonate.
Klein wants lithium sulphate pricing to be validated by PRAs. How does he know if AVZ’s modelling is not in consultation with Roskill? AVZ applied a simple 50% discount on the Tech LC prices. If a non/Chinese customer with stringent requirements on waste storage and no in-house expertise to convert spodumene to make carbonate or hydroxide then yes there is a market,—it’s not hard to imagine then why about 150kt of AVZ’s premium SC6 converted to stable lithium sulphate or even oxide? would be attractive in a new market, like Europe.
My guess is Howard Klein does not like this “get out of SC6” card to phase into an intermediate with hydroxide in view ultimately. He thinks AVZ may ship SC6 to PLL’s facility. I think like many others AVZ has different proposals and that does include hydroxide.
Further on Howard Klein’s gloss, AVZ in it’s DFS was especially equivocating with *technical* lithium carbonate which is not quite as pure as battery grade LC looking at Livent’s products, but the quality is not made clear in any case except that AVZ is not claiming highest specification as it appears, and not lowest either. It seems reasonable.
What Howard Klein did was look at a low price found somewhere current that is, an apparent SQM price $4k for an unidentified lithium carbonate specification. For all we the public know it’s an industrial grade carbonate?because I can’t see $4k USD anywhere. May be he was looking at Chinese Yuan 4,000? Howard gives no detail, makes no attempt to address how AVZ explains its pricing in the DFS.
in any case AVZ, using Roskill’s forecast (page 86) is projecting likely for a 2023 price when it expects to sell. So how Howard thinks AVZ’s $7k for lithium “seems” a bit high, is glossing over intentionally. When I “ “ ‘seems’ I’m quoting Howard Klein’s “get out of fact checking card” ; ‘seems’
Funding:
Howard Klein says “I don’t know any bank” that would bank on this Offtake in Africa. And he only points to pre-DFS funding advisors AVZ lists, But misses AVZ’s own stated possible financing sources in the post-DFS AGM presentation where AVZ indicates on page 34, African Development Fund Institutions (DFIs) and industry participant and private equity interest. Some of that is Australian possibly the same entity that invested in pLS here.
in short you can see that AVZ is not relying on the usual traditional punks for finance and it can do that as it’s not just a a development phase mine-to-be but a regional development project to be housed as a SEZ, An economic development project. Hence it’s funding terms with DFI’s with a long term view to economic amelioration will be significantly more attractive to AVZ than the usual punks lurking in Western or Chinsee capital office suites.
in short PLS shareholders should be wary of Howard Klein in the USA clearly partisan in favour of PLL.
Klein is not a miner, Andrew Forrest is a miner and Firredt has been to Kinshasa in 2020 for business on behalf of Fortescue Futures among other African states.
Dont be hoodwinked by Howard Klein’s glossy
