THE TRUE VALUE OF SAYONA, page-194

Well that's exactly right Split. But are we not charging NAL only C$105 per ton. So we can only take up the NAL PFS what its states as being ' Charged to NAL I would think.

So is this then meant to mean the ' Cartage ' only component including all the risk of transport and insurance are only C$105 per ton. If so is the difference between C$270 - C$105 = $C165 for just the Mining or Authier Rock. And if that is the case , can we surmise that the cost of crushing and processing the NAL ore is C$385 - $165 = C$220...... or converting usd at .76 of usd $167.20

So then the ' MAGIC ' of it all is that in any event the relationship to what Piedmont otherwise receives to what Sayona receives as represented by a ' Margin ' remains the same in your case as it does if we assume the C$105 is all that Authier is charging NAL per ton for its Lithium rock......and effectively operating at a ' Loss '

So in other words , it doesn't matter what Authier charges NAL . In BOTH these cases , the amount ' ADJUSTS ' , and the amount registered as the COST to Piedmont and its resulting ' Margin ' after offsetting its ' defacto ' sales of usd $225 is the SAME !!

Piedmont :-

Cost attributable from Authier = .25 x usd $ 205.20 = usd $ 51.30 (a) + cost attributable from NAL cash cost = usd $590 - $205.20 = usd $384.80 x .25% = usd $96.20 (b) . ( a) + ( b) = usd $147.50.

Piedmont then record a cost and a sale to themselves as follows :- Cost to them will be .75% x usd $900 = usd $675 paid to Sayona , and a revenue derived ' offset ' to the cost paid to themselves of .25% x usd $900 = usd $225

So if you view it as if Piedmont is getting usd $225 as a' Sale ' against usd $147.50 as their relative cost , their Margin is $225 / $147.50 = 1.5254%

Sayona :-

Sayona on the flip side is virtually the the inverse of the 25% 75% JV relationship so would be calculated as :-

Cost attributable from Authier = .75 % x usd $205.20 = usd $153.90 (a) + cost attributable from NAL cash cost = usd $590 - 205.20 = usd $384.80 x .75% = usd $288.60 (b) . ( a) + ( b) = usd $442.50.

So this would obviously mean that Sayona is getting usd $675 as a' Sale ' against usd $442.50 as their relative cost. So their Margin is $675 / $442.50 = 1.5254%.