Ann: Board Restructure and Cost Savings, page-65

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slygorilla

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06/04/20

13:43

Post #: 43905075
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Originally posted by manny100: ↑

Looks like all options will be on the table regards Lithium. Will be interesting to see the NPV of the DFS after the increase in reserves and recoveries. That plus future potential drilling tonnage to come on board will be the key. No indication yet of the Downstream processing study?
Could be an outright sale, buy in or JV? With Chris gone and the position 'absorbed' by current staff looks like the odds might be on a sale right now.
Whatever I doubt we will see any money spent on Gold drilling until the Lithium is sorted. Cash is king so conserve it.
With the Chinese costing the Operation they will know exactly the true value. Maybe that was what both parties had in mind when agreeing to the 'free' costing that was to complement the DFS.
Unfortunately these are not the best times to sell so lets hope we get a couple of interested parties.
With 317 mil shares and 35 mill options on issue will need a decent offer to make some good money.
The PFS was around an NPV of $A1000 mill. Shares plus options totalling say 350 mill we have a PFS value of $2.85/share. These are approximates.
The price of Lithium has fallen since the PFS but tonnage and recoveries have increased. There has also been work on costs completed.
Downstream processing if possible together with yet unfound tonnage will be a sweetener for any deal.
If for example the DFS comes up with an NPV of say $A1200 the per share/options value is around $3.40 per share.Remember the $3.40 is after deduction all costs including CAPEX. It is possible that with the fall in Lithium price we will still remain around the PFS value which is still good.
We would of course only get a fraction of the NPV value which will depend on negotiations, level of interest etc.
The more I think about it the more a sale is likely. Deep pockets are required as is operational experience.
Its wait and see from here.
One certainty is that any sale price if that is what happens will likely be many multiples of todays SP. There is a huge gap between the SP and any likely NPV plus the sweeteners which are thrown in.

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What would you estimate our payout SP to be?

MLL Price at posting: 4.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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Ann: Board Restructure and Cost Savings, page-65

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