PLS Group inks two-year offtake deal with China's Canmax
Make us a preferred source
Make us a preferred source on Google
The news: Lithium miner PLS Group has secured a two-year offtake agreement with Chinese battery giant Canmax Technologies for the supply of spodumene concentrate.
The numbers: PLS will supply 150,000 tonnes of spodumene concentrate per year, with an option for PLS to extend the agreement for an additional 12 months.
The companies agreed a floor price of USD1,000 ($1,410) per tonne. Supply will commence this calendar year subject to receipt of a USD100 million prepayment.
The context: Perth-based PLS said the agreement delivers "meaningful value" for shareholders as a floor price mechanism provides downside protection against market volatility while preserving exposure to price upside.
The company said the deal strengthens its near-term liquidity, and supports "disciplined production and sales decisions" as lithium market fundamentals improve.
What they said: "This agreement builds on our established relationship with Canmax and reflects both the quality and consistency of Pilgangoora's spodumene and PLS' proven capability as a reliable, large-scale operator," said PLS managing director and CEO Dale Henderson.
"... Deepening our partnership with Canmax further diversifies our customer base and reinforces PLS' position as a leading, reliable supplier at scale to the lithium materials market."
The source: ASX
