Hey CloudJosh,Firstly, thanks for the compliment. There is...

Hey CloudJosh,

Firstly, thanks for the compliment.

There is 50kTpa capacity expected out of Kachi on the resource information known so far. Note: Some will tell you that is only 25kTpa but Lake have been touring 50kTpa for some time in their announcements and media so I’m going with that.

There are currently 2 MOU’s (Ford and Hanwa) and now these 2 Conditional Framework Agreements with WMC and SK On (including 2 x 10% stakes) totalling up to 100kTpai.e. double the current level of availability.

The way see it panning out is as follows:
LKE will use the current competitive situation to push the 4 interested parties towards going binding and negotiate the best deals for the currently available 50kTpa. In this scenario, 2 interested parties will sign up and 2 will “miss out”.

I then think that the opportunity is there to either continue to expand the Kachi resource (as we haven’t drilled it extensively to convert more of the inferred resource to measured and indicated) and offer “first dibs” on additional capacity added to the 2 that missed out. We also have an option to accelerate drilling at Cauchari, Olaroz and Paso to firm up a resource and offer them capacity out of those other projects as well.

I think they’ll use the competitive situation that they have now to full advantage before coming up with alternatives for all 4 parties though. Leveraging the best deals for the Company will be front of mind for both Stu and David.

Also worth keeping in mind that Ford have a deal with SK On. The SK On deal may replace (or possibly supplement) the initial Ford MOU. We will find out in due course.