Running discussion on SP, page-21226

Evening all,

What a difference a day can make. Revised comparison between LTR and AVZ as per the below.

Market Capitalisation
LTR - A$208m (at 13.5c)
AVZ - A$108m (at 4.7c)

Est. cash position as at 30/6/19
LTR - ~A$3.5m (CR required this quarter IMHO)
AVZ - ~A$8m (CR not required this quarter and project funding imminent IMO)

Enterprise Value (EV) based on the above est. cash positions.
LTR - A$204m
AVZ - A$100m
(LTR now more than double the EV of AVZ )

Resources
LTR - 75mt @1.30% (62mt Measured and Indicated)
AVZ - 400mt @1.66% (269mt Measured & Indicated)

EV per contained Li resource ounce
LTR - A$2.72 (US $1.90)
AVZ (65% share) - 38c (US $0.27c)

Strip ratio
LTR - 8.24:1
AVZ - 0.7:1

Like a rubber band being stretched to the hilt from opposite sides, there grows an extreme disparity between valuations. There are two theories to this;

1. If LTR represents fair vaIue then AVZ should more than double when the market wakes up.
2. If LTR is overvalued then it will need to lose more than 50% of it's valuation just to match AVZ who has greater than 5 times the Li resource.

Either way, I know where I'd prefer to park my money right now and for the next 36 months at least.

GLTA

Cheers
Elpha