Ann: Anson Responds to US Government Pledge of Support for EVs, page-24

While this is largely a fluffy "nothing new here" ann, it does have a couple if very interesting points.

They are bringing forward the Lithium PRODUCTION plant to Stage 1. Until now I was unclear on this point, I though they just meant they were bringing forward the Stage 2 pilot plant (24t/annum). Today's ann is clear that they intend to include a Lithium PRODUCTION plant based on the existing process flowsheet with feed from the 15,000t/annum NaBr plant.

The ann from 20 May 20 included a Stage 3 15,000t/annum Li plant when the NaBr plant had been scaled to 60,000t/annum. So it is reasonable to assume, following the revision of the PEA, we will see a Stage 1 Li plant producing ~3,500t/ann. Using the same numbers from the PEA, that bumps the Stage 1 pre-tax NPV from US$575M to ~US$1Billion. AND THAT IS ONLY STAGE 1.

We know the NaBr plant is modular in design and can be easily scaled to 30k, 45k, 60k t/annum. This will happen once the indicated resource can be increased following additional reentry wells (approvals pending). With each additional module, the pre-tax NPV increases by roughly US$1Billion.

They are well funded to get the revised Stage 1 PEA, the Stage 1 PFS and the reentry wells completed by mid 2021 (so no CRs near-term). By that stage I'd expect the MC, based on current peer valuations, to be circa $300-400M. As additional plant modules come into the calcs, I expect a MC pushing $1Billion once they have a Stage 2/3 PFS with 60k t NaBr / 15k t Li2CO3.

Now is the time to take your positions, this thing should really start taking off late Q1 through Q2 if the anticipated plan of works pans out as expected.