Have now had a chance to read the announcement very carefully....

Have now had a chance to read the announcement very carefully. In my own opinion it's both good and bad, but certainly more good to come out of it than bad. The main bright spot is we have broken free from the restrictive agreement in place with Burwill to now to be able to play the field as profitably as possible.

For me, main negative is the lack of pricing transparency. Worded ambiguously and difficult enough to understand as is without:

"If not agreed, the higher of US$880 per dmt or the floating price will apply".

Difficult to ascertain if this condition is only for the Oct-Dec quarter 2019 or in its entirety until 31/12/2022.

The below 4 quotes directly from the announcement are very encouraging IMO and gives me faith that we are without question on the right track and destined for bigger things.

"During the last three weeks of December 2018, improved water management, lower strip ratio and improved grade from the pit resulted in a significant lift in the production rate to an average of approximately 420 tonnes of lithium concentrate per day which is consistent with the production target for the March 2019 quarter. Production for the first thirteen days of January 2019 has averaged 410tpd with a concentrate grade of 6.2% Li2O."


"Alliance is seeking new offtake partners to purchase remaining Stage 1 lithium and Stage 2 lithium concentrate production. Offtake interest has been strong as there is limited uncommitted, high quality, spodumene available from producers for 2019.
As a result of the removal of the pre-emptive right and exclusivity, Alliance has commenced discussions with other parties for the balance of Stage 1 and Stage 2 lithium concentrate production from the Bald Hill Mine."


"Outstanding prepayments of US$8.8 million from BCLC frozen until 2021. Offtake prepayments remain interest free and repaid at the rate of 15% of the value of each lithium concentrate shipment from 1 January 2021 until repaid."


"The flowsheet and equipment selection for the new fines plant has been finalised, and ordering of long lead mechanical equipment items has commenced. It is expected that commissioning of the fines circuit will commence in the first half of the third quarter of 2019."

Interesting also that right at the moment
40F down 2%
A40 down 11.7%

Riddle me that....