LRS General Discussion, page-16463

:excellent thx mate.

Most offtake agreements are usually light on details when announced to the market (in terms of the specific pricing mechanism), but most or maybe all of them utilise Chinese SC6 spot prices as a basis for the calcs.

So the pricing achieved will generally float with the spot price as you can currently see with producers reporting results each quarter.

So the ‘price’ won’t be effected by the current bearish sentiment but the overall value which we can negotiate will be (e.g. how much cash will a partner be willing to hand over as a pre-payment in return for securing a certain amount of spod each year).

Atlas lithium down the road from us recently negotiated $50m in return for access to 120,000tpa. See link below.

However LRS needs ~$250m for capex to construct and commission and will also likely need another $25-40mI’m guessing for working capital to act as cash reserves during ramp up until we see cash flow positive.

I’ve seen numerous comments not just from LRS but also other companies suggesting offtake eNquiries have not slowed down. Whether or not this is entirely true is another matter but this Atlas deal seems to support some offtake strength to a degree.

Id guess that if we gave access to 250,000tpa then we could expect somewhere around $110m leaving $140m of plant capex and ~$25m of ramp up cash reserves to fund

The recent sell down of share price has severely penalised every developer including us who still needs to rely on equity raise to fund at least a portion of construction. Debt raises are also severely impacted as you can see with LTR who had their banks walk away from them.

https://finance.yahoo.com/news/atlas-lithium-fully-funded-first-130000248.html