"would you be happy for avz to do offtake so close to the...

"would you be happy for avz to do offtake so close to the lithium price lows ?"

Absolutely I would be for happy for an offtake to be done so close to Lithium lows !!!

An Offtake IMO has 4 parameters:
1. A floor price
2. A ceiling price
3. A formula
4. And an exchange to attach it too.

Agreed the Lithium price is low and everybody knows it so the floor price is an easy discussion, so the 1st parameter should be easily agreed too.

The 2nd and 3rd parameters are to be negotiated which may be what's caused the hold up along with economic uncertainty due to covid and changes in the marketplace.

But IMO the most important issue is the 4th parameter. China as a country has the most amount of Lithium supply locked up and the prices are linked to the Chinese market.

IMO I believe with the anti china sentiment for most offtakes when targeted to countries outside China will want to use the LME ( London Metals Exchange) and hence be removed from the chinese market place. I feel at this point in time that this might be the hold up on any deals with Yibin as they would want to use the china price rather than the LME price.

I think that it would be very foolish to suggest that it is the worst time for AVZ to secure offtakes because the LTH price is low. AVZ own the LTH just because the price is low now doesn't mean that they are going to sell the LTH at today's prices. Its a floating price !!!!

Demand is going to be high for LTH where ever it comes from in the future and if AVZ signs an offtake to a European entity using the LME then I think this is huge because it will either mean that we will sell more to Europe or it will force Yibin to reconsider using the LME instead of the china price which is currently dominating the market in recent times. Just my thoughts DYOR.

GLTAH especially in the next few weeks