Sileach process, page-5

Each one are you are on to something and it is unlikely the alliance will let something like this pass it by.

In the short term I see a processing partner under the Mitsubishi arrangement however as we discussed earlier @shades2 I think it is fair to say that a method such as this used locally would work to the benefit of the alliance in a few ways. Export cost by way of less to export and also I have been researching ad valorem royalties  that WA hold. It looks to be advantageous to do such a thing ourselves and the two boards probably have researched this themselves and recognise it. I have no doubt that's the reason why the product coming out of Greenbushes may end up passing via a similar facility locally.

There are a number of patents filed under AUSPAT with regard to lithium processing. Galaxy even had a few and one I noticed passed over to Tianqi.

The difficulty is licensing and we know the Chinese don't give much concern to that once it is in their hands so the cost of exporting and processing within China will be considered. Does anyone think that once it is processed a country will trace back every battery and hold it to those patents? I don't see it however maybe it is possible.

I see a lot of strength in the alliance and predominantly Galaxy, for one, if they find a way to process here and value add which they probably will do here or overseas, the result is that the market will reward both companies more heavily than companies that are years away from any reward for their efforts. It was good to see LIT bump up 20% and the boards will have identified that also.

I am curious what losses occur under all of these processing patents. Theoretically if we produce 5.5% spodumene and the loss is contained to 5% that makes for around 10,000tpa of a higher grade in lithium which exceeds SDV 8,000tpa stage one. The benefit is that it opens a lot more doors for Galaxy to continue with developing James Bay and also SDV at the same time.

Worst case eith a localised processing ability for the spodumene resources we might see that James Bay produces 8,000tpa Mt Cattlin 10,000tpa and Sal De Vida 8,000tpa (which is expandable to 25,000tpa)  it works out to be around 14,000tpa for the rock assets and anywhere between 8,000 to 25,000tpa for brine.

That's a total of between 22,000 to 39,000tpa and a possible return in Australian dollars of $700m to $1.25b before expenses. ( at 150,000rmb spot)

Between 50c to $1 per annum before expenses per share is a decent return.

What lithium companies on the market can offer that in the next few years?

The price of battery grade lithium is always on my mind and at these prices with such a small amount used in them there is still alot of movement available.