Level-headed, blunt assessment of Lake Resources, page-268

“ …looks like everything they are doing is technically feasible..”

There’s technically feasible and then there’s commercially competitive.

IF ( still a big if) Lilac succeed in producing a feasible, industrial sized DLE module, then Lilac can sell it to LKE’s competitors.

The context of the use of the DLE modules should be considered with respect to profitability. e.g. CAPEX and OPEX costs of the following will vary between competitors:

• Power
• Water
• Fuel
• Chemicals
• Transport / logistic chain length
• Establishment and maintenance of a skilled work force
• Risk premium on finance.

One could expect that a competitor, with the same DLE modules, that held 100% ownership, had ready access to existing power, water, fuels, chemicals, short transport / logistics chain and a skilled workforce; would have lower CAPEX and OPEX burdens eating away at profit margins. This advantage along with the ability to leverage the lessons learned by those that trail-blazed may allow for enhanced timelines for rapid incremental scaling to first production.

When demand and price of products cycle down and/or costs increase, the producers with the healthier profit margins are able to continue or reduce production, whilst those with lower margins cease production.

How commercially competitive do you think LKE might be in 2030?