Ann: Adina Drilling and Operations Update, page-62

By the way, what are your thoughts on the Latin Resources deal? Lain Resources’s Salinas project is comparable in size to Winsome’s Adina, with both boasting a Mineral Resource Estimate (MRE) of over 70 million tonnes. Winsome has yet to unveil its Preliminary Economic Assessment, but it’s quite probable that Adina will be a DMS-only project, implying a similar flowsheet to Salinas. Although Canaccord Genuity suggests that Brazil may offer lower operating costs.

The acquisition of Latin Resources valued the company at around A$550 million, which is four to five times the current market capitalization of Winsome Resources. This valuation reflects the premium that major companies are willing to pay for a quality lithium deposit, even amidst the current bear market for lithium.Despite this, many minority shareholders of Latin Resources are dissatisfied with the price and are holding out for a better offer.

Personally, if Winsome were to receive an acquisition offer of A$550 million at this stage, I would vote against it. Consider Sayona Mining, whose peak market cap was about A$4 billion, and it’s not just a DMS-only project. Moreover, its selling price is capped at$900 per tonne. If we exercise patience and wait for the next bull market, which some predict could arrive around 2028, we could easily see a tenfold return. My hope is that the management and major shareholders of Winsome Resources will demonstrate more foresight than those at Latin Resources. Do you think we got a better management than Latin Resources?