PLL General Discussion, page-803

I bought my first parcel of Piedmont earlier this month, although new to PLL, I've been investing in Lithium stocks since Galaxy Mk1.

There will no doubt be some holes in my research, and after listening to the SYA (which I don't own) presentation, I've have a few comments on some of the topics raised here and on the SYA threads.

My understanding of the offtake agreement is, it's based on a Calendar year, so if Sayona Quebec plan to produce 85-115kt this CY, remembering the agreement starts on July 1 - then our 6 month share would be half of the minimum 113kt pa - so 56kt

Despite others saying it'll be shared equally, the word "equally" isn't used in the presentation.
What he did say was:
"Each shipment starting in July will be shared between PLL and other customers.....once we get into a post ramp period, so next year, that’ll be allocated to PLL and other customers on a pro rata share"

My interpretation, is next year if they're producing at nameplate 226 or above, then each shipment will be half PLL, half other customers.
If they are struggling and only producing at say 150kt pa, then we'd still get the min 113kt pa, other customers would get less (37t) & shipped on that ratio.

In relation to the grade of Spodumene, in the PFS it says:

"......for the life of the facility, with a minimum price of US$500 per tonne and maximumprice of US$900 per tonne, excluding any quality true-up to the standard specification of goods. The balance of the production volumes not allocated to Piedmont Lithium can be sold in the market to any third party. "

So that takes into account any grades above or below 6% & also contaminants. Obviously the people doing the PFS have access to the full offtake agreement - we only see the abridged version.

With regard to the extinguishing of the offtake agreement with a carbonate or hydroxide plant, the offtake agreement does mention this as shown below, however both partners would have to agree to build it. having said that, the JV does have an undertaking (backed with penalties) to build a hydroxide or Carbonate plant within 6 years (10 years?) - part of the NAL agreement.

I'm sure this was discussed at length at the time, I'd be interested to hear other people's understanding of it. The way I see it, it would be in PLLs best interest to delay the start of a downstream plant if SP6 prices hold up.

asx 30/8/21
As part of the Quebec Content Undertakings, a feasibility study into the development of a spodumene
conversion facility will be conducted within three years from the transaction’s closure. In addition,
subject to certain conditions, NAL has undertaken to convert its spodumene production into lithium
hydroxide or lithium carbonate within Québec from the sixth anniversary until the 10th anniversary of
the closure.

PFS
"Sayona Quebec's offtake agreement with Piedmont Lithium contains a volume waiver should Sayona Quebec pursue the transformation of the lithium spodumene concentrate into lithium carbonate or hydroxide, either through the restart of La Corne's lithium carbonate plant, or the construction of a new lithium chemical production capacity at the Facility or at another location. In that operating scenario, the lithium spodumene would be allocated in priority to Sayona Quebec's transformation plant, then to Piedmont Lithium for the contracted volume, then to third parties. "