Unbiased comments please, page-6

You need to read the PLS forum to understand the extra detail of this arrangement, but the 20m is an equity injection, and the deal means that their entire stage 1 production is now sold, they have 40 = 65m in cash plus they have already been building the mine/production facilities so with the 20m they probably need another 50m or so. The forward sale and duration of the terms means that they will probably be able to use debt to raise that - a good deal cheaper than a CR. They have a stage 2 planned which is now 25% presold as well. Lastly the spod price, while not disclosed is supposedly linked to the Li2CO3 price so it will vary up if the CO2 price rises.

Probably not a bad set up all round, and brings a lot of security/certainty.

As far as GXY impact is concerned, on the down side, it increases the likelihood of PLS getting to production stage and competing with a low mica and possibly lower cost of production product for the same customers. On the up side it will increase the pool of lithium investors having another successful producer, and Ganfeng have indicated that their demand is higher than can be met by PLS stage 1 output (hence interest in stage 2), the pricing mechanism is potentially interesting if forward Li2CO3 prices are expected to rise.

At this stage I think it is in all our interests to have multiple large successful producers. It is likely that the forward demand estimates are low, and multiple producers in one country create critical mass for attracting customers, investors, suppliers, finance, infrastructure support and expertise.

All good as far as I can see, subject to the undisclosed spod pricing. Note that TAW's just negotiated pricing for 6% spod, that is not in production yet and carried the implied mine build financing discount was good even for a producing mine, so it is likely that PLS's price was pretty healthy.