Ann: Altura Declares Commercial Lithium Production, page-68

Recently bought into AJM. Have been watching this for a while, imo it is inevitable that this will rerate over the next 12 months. I will keep my modelling to myself for now, suffice to say I see a very strong floor being developed around raise price.

This announcement is significant. They have essentially achieved nameplate, and on the back of this major derisking, AJM will be printing cash for a long time. Refinancing is much easier once you can demonstrate a steady production rate and the actual revenue figures can be shown to lenders. I fully expect AJM to successfully refinance by end of year.

Once that refinancing occurs, then they can look into expanding to Stage 2. The DFS makes it very clear; this operation is going to be very profitable even at lower spod price levels. The build/expansion will be much easier now that they have actually built the 1.5mtpa concentrator, they are essentially just duplicating the build so it will be done quicker and cheaper imo.

One thing I would suggest though is that the exchange rate is going to have a massive impact on determining when we should finance this expansion. The revenue we receive is in USD, correct? Our low AUDUSD is very advantageous to us in this regard, but could make funding more expensive in relative terms. As some posters are suggesting, holding off until the dollar improves may be the better option.

If I have made any errors in my assumptions let me know pls! Cheers.