Offtake pricing, page-5

Just update on offtake pricing, Simon just confirmed there was NO discount on offtake price last week.

Offtake pricing. It's linked to lithium chemicals price, taking spot and quarterly average into account, NO discount, less Ganfeng conversion cost, pretty much the market price.

In my own conversion price calculation, I also account 10% profit margin for Ganfeng/Converter, so I am pretty happy, over next few years, SC6 sale price should be US$2,500 per ton or higher, based on lithium carbonate price of CNY 200,000 per ton (2/3 off the peak price). At that price, LLL's annual net profit after tax would be around $400m to $700m, at the 40% ownership.

On 5 May 2023, Canaccord, just updated lithium price, lifting spodumene concentrate (6% FOB) price from previous ~US$2,250/t to US$2,800/t (+24%) for 2025 & 2026, from US$1,500 to US$2,800 for 2027, then remain their long term price at US$1,500/t which they admitted that price is very conservative.