Financial Performance - The company's plant gate cost decreased by 4% from $364/t in 2Q24 to $348/t in 2Q25[28] - CIF cash cost with royalties decreased by 14% from $515/t in 2Q24 to $442/t in 2Q25[28] - All-in sustaining costs decreased by 24% from $779/t in 2Q24 to $594/t in 2Q25[28] - Short-term trade finance debt decreased by 57% from $101 million in 2Q24 to $43 million in 2Q25[29] - Gross sales revenue was $211 million in 2Q25[32] Production and Sales - Production volume increased by 40% from 49,389t in 2Q24 to 68,368t in 2Q25[28] - The company is on track to deliver 270kt annualized production in FY25E, a 13% increase from 240kt in FY24[28] - Sales volumes were 40,350t in 2Q25[32] - The average provisional price for 2Q25 was $637/t, with a net price of $507/t after adjustments[32] Expansion and Strategy - Phase 2 expansion is underway, leveraging existing infrastructure from Plant 1[34] - The company is pursuing a geographically diversified offtake strategy targeting 240,000t per year with potential prepayment value of $300 million[51] - Sales in August achieved final prices of $966/t (SC6)[18]

Core Viewpoint - The overseas lithium market in Q1 2025 remains resilient under continuous price pressure, with Australian mining expansion slowing and South American salt lakes operating steadily due to cost advantages. The negative feedback from declining lithium prices on upstream supply is beginning to show [1] Group 1: Australian Lithium Mining - In Q1 2025, tracked Australian lithium mines produced approximately 732,000 tons of spodumene concentrate, a decrease of about 9% quarter-on-quarter [2] - Many Australian lithium mines adopted production cuts or slowed expansion to cope with high costs and low prices, leading to a significant decline in overall output [2] - The average FOB cost for sample mines decreased by 10% to $418 per ton, while the average realized price increased by 4.75% to $833 per ton, slightly alleviating profit pressure for producers [2] Group 2: South American Salt Lakes - South American salt lake companies demonstrated stronger operational resilience due to their cost advantages, with SQM achieving its highest Q1 sales of 55,000 tons of LCE [3] - Lithium Argentina's C-O salt lake operations met expectations, with Q1 lithium carbonate production increasing by 60% year-on-year to 7,200 tons [3] - South American salt lakes maintain considerable profitability and cash flow due to their significantly lower cost structure compared to hard rock lithium projects [3] Group 3: Supply and Demand Dynamics - The reduction in production from major overseas lithium mines has not fundamentally reversed the short-term oversupply situation, and inventory digestion will require time [3] - It is anticipated that downstream demand will seasonally recover in Q3 2025, which, along with the ongoing effects of production cuts, may support lithium prices in the second half of the year [3]