Spod Oresome! More than likely, eight consecutive quarterly...

Spod Oresome! More than likely, eight consecutive quarterly SC6.0 price increases after eight decreases. All this whilst China Inc is insisting on a Covid zero policy. Unlock the beast I say, plenty more upside in this sector for all and sundry.

What a month, what a quarter, what a year so far it has been for all lithium enthusiasts and investors of all types and sizes. Fingers crossed this reality dream keeps on giving …

“The Company has entered into a sale contract for 5,000dmt SC5.5 FOB Port Hedland priced at US$7,255/dmt which is the equivalent of ~US$8,000/dmt on an SC6.0 CIF China basis after adjusting for lithia content on a pro-rata basis and inclusive of freight costs”. Extract from PLS ASX release titled Additional Cargo Sale ~US$8,000/dmt, dated 24th October 2022.

OMG! Spodumene (SC6.0) concentrate prices are on target to rise another +50% in the December 2022 quarter from the received prices in the September 2022 quarter. Still time to top up with all things green and white, bring on the maiden LRS Colina resource earlier I say and then further/many increases and upgrades next year … Bye …

Spodumene (SC6.0) concentrate prices by quarter since 2018:

Dec 2022 qtr US$ +7,500? per dmt (+50%?), above and beyond, a big Spod Oresome Xmas for me …
Sep 2022 qtr US$ 4,813 per dmt (+12%), are we there yet? No
June 2022 qtr US$ 4,267 per dmt (+60%), say what. PLS ASX June 2022 Qtr release,
Mar 2022 qtr US$ 2,650 per dmt (+50%)
Dec 2021 qtr US$ 1,775 per dmt (+100%)
Sep 2021 qtr US$ 875 per dmt (+45%)
June 2021 qtr US$ +600 per dmt (+14%)
March 2021 qtr US$ 526 per dmt (+33%)
Dec 2020 qtr US$ 395 per dmt (0%)
Sep 2020 qtr US$ 398 per dmt (-3%)
June 2020 qtr US$ 411 per dmt (-2%)
Mar 2020 qtr US$ 419 per dmt (-19%)
Dec 2019 qtr US$ 520 per dmt (-14%)
Sep 2019 qtr US$ 608 per dmt (-11%)
Jun 2019 qtr US$ 682 per dmt (-14%)
Mar 2019 qtr US$ 791 per dmt (-14%)
Dec 2018 qtr US$ 930 per dmt (-13%)
Sep 2018 qtr US$1070 per dmt (+11%)
Jun 2018 qtr US$ 960 per dmt (+7%)
Mar 2018 qtr US$ 900 per dmt (+7%)

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Sometimes the questions are complicated and the answers are simple.
~ Dr Seuss

Notes:

“This offer of US$7,100/dmt equates to an approximate price of US$7,830/dmt on a SC6.0 CIF China equivalent basis after adjusting for lithia content on a pro rata basis and freight costs. Shipment is expected from mid-November”. Extracts from PLS ASX release titled BMX pre-auction bid ~US$7,830/DMTLithium, 18th October 2022.

“Average realised sales price of US$4,266/dmt SC5.3 basis (CIF China) achieved for spodumene concentrate shipped. This equates to a reference price of US$4,813/dmt on an SC6.01 basis (CIF China) when adjusted pro-rata for lithia content (June 2022 Quarter: US$4,267/dmt SC6.0 basis (CIF China))”. Extract from PLS ASX release titled September 2022 Quarterly Activities Report, dated 25th October 2022, p1.

“Average spodumene concentrate reference sales price of US$4,267/dmt1 a 61% increase Quarter on Quarter (SC 6.02, CIF China basis) (March 2022 Quarter: US$2,650/dmt CIF China SC6.0 basis).” Extract from PLS ASX release titled June 2022 Quarterly Activities Report, dated 28th July 2022, p1.

“with a gross cash margin of 80% based on an average sales price of US$5,028/dmt CIF for SC 5.4%”. Extract from AKE ASX release titled September 2022 Quarterly Activities Report, dated 2st September 2022, p1.

“In the June quarter, 24,845 dmt of spodumene concentrate was produced and 37,837 dmt was
shipped, generating record revenue of US$188.9 million with a gross cash margin of 84% based
on cost of production and average pricing of US$4,992 /dmt CIF for SC 5.4%”. Extract from AKE ASX release titled June 2022 Quarterly Activities Report, dated 20th July 2022, p1.