Offtake pricing

I think it's good to have a separate thread as this has been repeated asked.

Offtake price, Simon said, he had a look at documents and price formula, it looks pretty reasonable, it is tied to chemicals including lithium carbonate as well as hydroxide, elements of spot price as well as longer term contracts, quite decent price formula,
Source: Episode 128: Simon Hay - Global Lithium Podcast

Simon, "The key advantages I think in the pricing mechanism that we have with Ganfeng and the other thing is they're a great partner they have a rapacious demand for the spodumene, they're building multiple plants in China they need our product and we're really Keen to deliver it to them as quickly as possible"

Rick, "have had a look at the off-take arrangements, you know we shouldn't discount the benefit of the cash flow that will come from stage one to the Leo Lithium so I'm satisfied it's a very well structured and a very fair  Arrangement uh with with a fantastic partner."

Also, LLL has a right to terminate and sell Goulamina product to third parties in the event of non-performance.




Here's my understanding, the offtake pricing is very fair, reasonable, also from my personal research, Ganfeng is more than happy to pay at market price while lithium price mechanism is formed and functioned like iron ore price mechanism, so pricing formula will not be used, just simply using industrial recognized market pricing.

Mali government will have 10% free carry, with an option to acquire additional 10% at market fair price. I believe even they acquire additional 10%, LLL and Ganfeng will remain have 50:50 marketing right for the Goulamina products.

Here's some comments from Simon re Stage 2 offtake for LLL's 50% products:

"Leo has 50% of stage 2 is currently 300,000 tons per annum of spodumene, our share is 150,000 tons, that's significant on a global scale when you think about some other producers that will be coming into operation that's their full production or thereabouts. So it's significant by itself, secondly it's enough to power or to supply one lithium hydroxide train in a in a complex, so we could produce 20,000 to 25,000 tons of lithium hydroxide just from that share of the stage 2."

Stage 2 offtake, it's open to European customers, five or six days sailing to Europe. The Stage 1 offtake, Ganfeng is building own converter to take all Stage 1 products. Ganfeng is also very interested in Stage 2 offtake.


Always do your own research. All imo.