PLL General Discussion, page-2092

Some confused souls wandering in the ether of another forum about how much PLL is making. Don't know how you can make such a simple calculation so convoluted. Mind you ... why would you be more concerned with what another is making more than you would what you are making?

From the Sep'23 10Q filing, which has been highlighted and discussed a few times already. PLL has 1 SOURCE OF REVENUE at this point in time and that is the OTA WITH SYQ (Sayona Quebec the JV in which it also a 25% equity owner).




Ya buy SC for ~US$805/t and sell it for ~US$1,624/t and ya make ~50% margin (~$819/t) and sell 29Kt thats a GP of US$23.75M

That was PLL's project level EBITDA coming from JUST THE OTA with SYQ. There's really nothing more to it than that. And if the Dec'23 Qtr ASP for SC drops to US$1,019 then our margin is ~19.6% and GP is (say it was 29Kt for comp) US$5.8M (assumption of FOB pricing as in Sep Qtr)

Nothing more complicated than that.

Now the JV portion ... a bit more complicated but at this point in time there is NO CASH COMING OUT OF THE JV (what we want to avoid is putting more cash into the JV ... but if SYQ needa cash then it makes a cash call on the JV partners), so there is not point in calculating that. There is no such thing as PLL (or SYA) paying the operational expenses of of SYQ. They have been funded and hopefully as JB noted "we're working to the overriding philosophy that cash doesn't get tipped in at NAL" ... in other words they are selling for more than cash costs.

The other aspect to think about is "liquidity" and I keep reading about - for SYA AUD$200M in the bank and an ATM facility (i.e. use of the corporate cash printer aka equity sales) ... and lots of concerns about PLL not having sufficient capital to fund its projects. Well of course PLL also could use an ATM facility but doubt they would need to ... I mean who wants to sell additional equity at these prices. But from a liquidity perspective this is what was written in the Sep 10'



So the total Capital expected to the spent in Q4 ranges from $28M - $36M for both their own projects (TLP & CLP) as well as equity method investees (SYQ and GLQ)

I mean I can't see a problem (yet). We get the Dec Qtr soon and hopefully some addtional guidance on the Capex cadence for '24.