Ann: Trading Halt, page-56

By my calculations if your paying $10k/t for technical grade you need $11.2k/t of feed + conversion cost to make 1 tonne of hydroxide,

What is conversion cost, I have no clue all we know is it's more than spodumene, so $11.2k and $3k+, that leaves no margin at these prices, you have to wonder how much production we will see out of Qinghai next season and can companies like ORE even survive?

If 50% of ORE production is technical grade and spodumene steals aways the hydroxide customers away from the technical grade market moving forward, what are they going to do with half their production.

We could have some supply destruction in 2019, something has to give Qinghai is relying on industrial and technical grade supplies to turn a buck and so is ORE, if their buyers aren't there, just relying on battery grade carbonate sales isn't going to pay the bils.

Also if we are going this deep you have to remember that not all hard rock deposits are made equal either.

Producers with lowest of deleterious elements Mica/iron ore will be hitting the low end of the conversion cost curve, in particular mica is very expensive to remove, iron ore not as much, but it all adds up.

At some point the cream is going to rise.