Ok, we only have a few more things to cover in terms of income...

Ok, we only have a few more things to cover in terms of income for the quarter. The first of those was mentioned by someone earlier and that is adjustments to sales.

When we ship product on the spot market we negotiate a price at the time of shipment, but during the time it takes for a ship to get from Quebec to China the price of lithium has changed. For the past few quarters it was going down while ship was in transit and we got dinged when it arrived in China, now that the price is going up, we should see the opposite.

Here are my thoughts.

• In the January to March time period we had 4 shipments. One in early January that went to Tesla and the fund for that would have been paid in prior to the end of the quarter so we would not see and adjustment for that shipment, we would have also had 3 other shipments that occurred at the end of each month. Each shipment averaged 14,000 tons. The 2 that straddled the end of the quarter that would have a pending adjustment for this quarter would be the ones at the end of February and March.
• Because we have the thread for spot prices and we have screen grabs of what prices looked like during the times in question we can make some assumptions of what adjustments should be applied. Below illustrates the gains from the end of Feb to the end of March.

The price continued up in April, but has since stayed relatively static. My guess for the load in Feb we will be adjusted by about us$150/t and the load in March we would be adjust about US$30/t .

So we should expect to see 14,000 * 150 = US$2,240,000 and 14,000 * 30 = US$420,000. for a total of US$2,660,000 or around A$4 million in sales adjustments.