One thing I will be very keen on getting insight into is the ASP...

One thing I will be very keen on getting insight into is the ASP PLL will be receiving from TSLA and LG under their formula pricing. Trouble is, its not disclosed. However this "formula based pricing" has had a fair of inspection done already.

AN EXAMPLE taken from
https://www.oxfordenergy.org/wpcms/wp-content/uploads/2024/02/Insight-145-Lithium-Price-Volatility.pdf



So if I plug in some numbers (all US$)
Prevailing Hydroxide price ... $10,000/t
Conversion Cost ... $2,500/t
Processing Fee ... $100/t
Margin ... 15% of Chemical Price
Recovery Rate ... 7.5
Freight ... $50t ... this is going to TX not China

SC6 ASP = (10,000 - 2,500/100 +15% x 10,000) / 7.5 - 50 = (10,000 - 25 + 1,500)/7.5 - 50 = (11,475)/7.5 -50 = 1,530 - 50 = $1,480/t

Again just an example but shows the irrelevance of the China Spot Spodumene Price when PLL sells to TSLA. What we'll not know is what the formula actually is and what those individual variables are set to. The Red Box highlighted uses the settings from above.



Whatever the ASP ends up as ... it has to be better than selling into the China Spot market.
GBEM!