PLS did a sheet deal with Ganfeng. The floating price fixed on the IN China price is deadset dumb for 10 years duration. This has knee capped PLS when it should be running like WINX. Look at what PLS, AJM, GXY, Mt Marion/MIN attain with what the quality of the product is. PLS being a higher quality than the others should be attaining a far better price.
So look at what Talison is getting from Tianqi. This will be the comparable factor that high quality Battery Grade with super low deleterious elements should be getting. This is the price comparison we should be looking at. Poorer quality that is industrial grade requiring re-processing is obviously worth less as the costs to bring it up to spec has further costs involved.
Starting off with low deleterious elements is a bonus and the MET tests will be important here. Especially in the ever improving "Measured" which has 93.5Mt included @ 1.69% Li2O. That is a known quantity. Attributing US$600/t is lowballing to the extreme IMO and is not going to be the price paid to AVZ. It means all the others will receive sub $600/t. apart from Greenbushes.
AVZ Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
