NEXT SMALL CAP - Our Top ASX Pick of 2020, page-124

mbot - ssshh! Am continuing to accumulate . A newbie to the story but not to lithium. Had a decent position in another explorer with a good asset - and still hold a few of them - but am switching to this with these top of mind thoughts:

• I very much prefer VUL management and technical team and the collective skill set (Alex Grant from Lilac among others is one of many).
• Asset location - Germany of all places - is brilliant, especially after Covid -19 and the inevitable stepping away from reliance on China. There's a real point to prove there. Also, Covid-19 has highlighted the risks and delays of travel planning to remote places e.g. in South America. Plus I'd rather be investing in a treatment plant in Germany than just about any other place in the world. Then there are governance issues and the reliability and predictability that flows from that. Multi-dimensional positives in this location basket..
• The electric vehicle movement has barely started (without even taking account of any talk about zero emissions for this project).
• Energy costs are a potential big deal in the process but the heated thermal brine seems to me to be a big potential cost saving (without even taking account of possible energy sales into the grid).
• Great capital structure, with management (esp. MD heavily vested in success of share price). Not too much paper even after next cap. raising (which I would imagine would find willing, steady hands given that this story is just at the start of the curve).
• Incentive options for management etc. priced well above the market add strong incentive to get the share price up, not just receive wages.

Very compelling indeed.