Lee Kyung-seop: And I’ll add about the lithium part. As for lithium, In terms of sales, when you look at the recent trade, it’s all based on the fiscal markets. And also the raw material is based on the fast market as well. However, when we have long-term purchase and contract, then we also use other, like Asian metal, Shanghai metal, or [PLATS] (ph), and then other benchmark indices that we are mixing. So we mix around five different benchmark indices and we will use the mean or the median depending on the trading partner. And as for the market price, the one that is reflected the most well is the fast market. So the spot trading is mostly done in this market. And as for the time point, as for the PPLS, for the ship, we will get an average of those and then we will use it as a formula for the benchmark price.
And as for lithium sales, we use the average price from the previous month on a general basis. And that is what is on the contract for PPLS at the moment. And as for PPLS, with Pilbara, we have completed the raw material purchase contract and we already have 5,200 tons in Gwangyang plant already to prepare for operation. So we have already finished with the agreement. And as for Argentina and the cash cost there, we have actually made some comparisons and it’s a bit difficult to tell you the exact value now, but we are at the topmost tier. And that’ll be all.
Operator: Next question is from [indiscernible] from [indiscernible] Security. You have the floor?
Unidentified Analyst: Yes, thank you very much. My name is [indiscernible]. I have two questions. First question is this. Now, on the value day, you talked about the lithium price is going to be around $30,000 and based on that you talked about EBITDA and also revenue projections, now if that is the case if our lithium prices — lithium prices actually went down $25,000 and also $20,000 if that is the case I think that Salt Lake and also [indiscernible]. What would be the margin per raw material and other than the margin per material, what is cash cost like? What are the items on the cash cost? And what are your presumptions or assumptions? And question number two, I understand that you started normal operation of one of your plans. So what is the cycle and what is the operating margin, operating profit margin at this point?
Unidentified Company Representative: Thank you very much. On value day for lithium price, we projected that it’s going to be around $25,000 to 2030. Recently, however, with the prices, there is a possibility of a decline by about KRW5,000. Now, with regard to that, for lithium ore, out of the total cost, iron ore takes about 60% to 70%. So if the lithium price goes down, then the raw material, the biggest item of the raw materials will also go down, so it’s highly volatile. So I would like to say that it’s not going to affect the profit that much. And when it comes to Salt Lake, the raw — other than the pumping cost, there are not that many variable costs. So other than that pumping cost, rather the Salt Lake cost, again, not other cost items are significant.
But for long-term projection, OP, I think that it’s not going to be that significant a different from our original projections that we shared on value day. Of course, short term, this year and next year, yes, I could be fluctuating a little, but the timing of our commercialization is going to be, PPS is going to be completed at the end of this year and it’s going to be certified early next year and starting from the second half of next year we will be starting to produce and sell. In Argentina I think that we will be also starting to sell starting from 2025. So by the time we sell our products, I think that lithium prices will become — will be back on the normal track.
