@Vodski
Why do some here find that so hard to understand? Because I believe you have spent way too much time in the cesspit to realise that it's you making assumptions that have no basis in reality...and this is why...
So, you say ...
To clarify, the SC6 offtake commences from a point agreed upon by both partners no earlier than July 2023 and no later than July 2024. Piedmont claim NAL production is starting 'end H1 2023' which aligns with the start of the offtake window, whereas Sayona are stating production will commence in Q1 2023. Now as they are the operator of NAL and seeing the current status of the project I am inclined to believe Sayona on this.
Seems to me that these dates are all semantics...Production will take time to ramp up, you don't make nameplate from day 1, but you know that, of course. And in reality it doesn't matter whether one says Q1'23 or H1'23. The point you need to get clear on is the start date of the OTA...but then you get caught up with an argument about 2 different issues, 1) the OTA start date and 2) agmt on the hydroxide plant...
You say... '
So my point in response to some of the previous comments is that if PLL were to attempt to delay the move to carbonate or hydroxide or attempt to renegotiate the agreement to profit further as some here have stated will happen, well then what would stop Sayona from delaying the commencement of the SC6 offtake until as late as contractually possible in that window, so, say, July 2024?'
See, your point about the hydroxide plant and the start date of the OTA, are unrelated. I know YOU think they're linked, but they're not. Discussions probably aren't even in train about the hydroxide plant yet. But discussions about the operation of the OTA will have been done a while ago (probably when the 2 parties SYQ/PLL got together after feasibilities to agree on the restart of NAL operations) - and that's why PLL have included 6 mths of revenue for the OTA for the latter half of FY23. And as
@cmonaussie pointed out its SYQ involved here, not your SYA. So changing any agmt with the OTA would be business suicide for SYQ or even SYA.
The underlined part of your quote above, I take it is your attempt to understand our claim that KP will want to be recompensed should he agree to the hydroxide plant, thereby foregoing the lucrative OTA deal he has? That's not a renegotiation. You just can't get your head around the fact that PLL will have to be recompensed revenue by foregoing the OTA spod in favour of the LiOH plant. That's business. Don't you think there will be some thought already gone into the deal with the LiOH plant that will equate to PLL's current claim on spod production? You just don't give up a $800M pa revenue line for nixs. And no, I don't think the 25% share deal with SYQ is a prepayment for this agmt, as you seem to be suggesting. PLL paid mkt value for the SYQ share purchase at the time in 2021. Be like you saying you sold out your SYA at .05c last year and because they're now worth .24c, you should be recompensed for the difference now?! Doesn't make sense.
And then you reckon that...
They (SYQ - my input) could then literally buy out Piedmont if we were attempting to hinder the JV. Now this is funny, because now you're actually agreeing with us in a round about way. So SYQ make an offer to PLL (remembering SYQ/SYA can't demand PLL sell) which will have to be along the lines of a NPV calculation for foregone revenue....in which case, PLL will (likely) only agree if it was attractive enough to them - and I would see the figure as being in the multiples of your "couple of hundred million capex", just simply based on potential OTA revenues.
So in summary, I agree KP will likely want a LiOH plant, but I don't agree he will settle for the current 75/25 split of SYQ, because quite simply - he already has that (at mkt price at the time). I know you can't get your head around the fact PLL will likely be looking for something in return for going from an lucrative OTA to a LIOH plant, but it would be career ending for him if he didn't. Something will emerge that both BL and KP have been cooking up along those lines. But I can't see how he will just give it away, because if he did - that would be delusional and more along that lines of how the SYA retail holder thread works!
(20min delay)