Ajay Kochar: Yes, so in summary, no, it won’t conflict with any of our commitments. I think at the end of the day here, we’re taking an economic decision, as Debbie talked about, to get the best intrinsic unlocked value. As you’ve seen and what’s been interesting, with lithium prices staying relatively high and sustained, even though there might be some short term , that has shifted the value equation significantly, as you saw on Page 11, 70% of that roughly intrinsic value being lithium, so this is really the inflection point that our Rochester hub will drive. That’s the best decision mostly likely in most cases for us to retain that value but still keep some flow as needed for some black mass to be sold. Debbie, do you want to add to that?
Debbie Simpson: There’s two strands to it, Brian. As Ajay says, it’s the value. It’s the industry to access the embedded value in the future, which is a very good economic decision, and then the second part is just operational planning and making sure that we build sufficient inventory to help with this new start to the hub.
Brian Dobson: Excellent, thank you very much.
Debbie Simpson: No problem.
Operator: Thank you. We’ll take a follow-up question from PJ Juvekar with Citi.
PJ Juvekar: Hi Ajay and Tim, I understand that you don’t get any value for lithium today because you started with cobalt and manganese smelters, but what happens to that lithium that is there? Who gets that value?
Tim Johnston: Nobody, PJ. In short, basically it goes into a high temperature smelter style arrangement, and the lithium is effectively converted to waste, whether or not that’s in the form of slag or simply burnt off as part of the off-gas from the smelter, so it’s lost. That was one of the key drivers why we started Li-Cycle in the first place, is that that traditional way of processing black mass in lithium ion batteries doesn’t attribute the value to where the value is.
PJ Juvekar: Clearly. When your hub starts in Rochester, how much of the revenues would be lithium? Given where prices are and how valuable it is and it’s lost today, how much would that be as part of your revenues there?
Ajay Kochar: Yes, if you look at Page 11, PJ, with the breakdown, essentially, that bar chart that we’ve given for the black mass, the bar on the right of Page 11 shows 70% of rough value attributable to lithium and then 30% to nickel and cobalt. That gives you a rough indication, and obviously as prices move around, that may shift, but just roughly that gives you a bit of an idea.
Tim Johnston: Yes, and if you think about it today, keep in mind we don’t extract 100% of the nickel and cobalt value when we sell the black mass today. We’re only extracting a proportion of that, so the whole stack grows proportionately.
PJ Juvekar: Great, thank you.
Ajay Kochar: Thank you.
Tim Johnston: Thank you, PJ.
Operator: Thank you, and at this time it appears we have no further questions in queue. I’ll turn it back to Ajay for any additional or closing remarks.
Ajay Kochar: Thank you. To reiterate our earlier remarks, this past year was foundational for Li-Cycle and we continue to be excited by our growth prospects. We continue with the implementation of our spoke and hub strategy, keeping the Rochester hub on budget and schedule and advancing our spoke technology and processing capacity. We continue to mirror customer demand and expect continued execution of long term arrangements with key global battery market participants. We also expect to drive further network growth with meaningful debt financing, and we look forward to updating you with more details in the first calendar quarter. Thank you for your interest and your support of Li-Cycle.
Operator: This concludes today’s call. Thank you for your participation. You may disconnect at any time.
