Ann: 2020 Annual Financial Report Announcement, page-88

The focus should be on integrated projects and not, for example, on spodumene concentrates only or projects requiring additional processing as will become apparent below. Of course, there are several ways for an OEM to approach an integrated project.

Ahead of an investment, a structured approach for meaningful due diligence is required. Of importance (the following listing is not inclusive) for an OEM are:

1. Status of project: research, maiden resources, PFS, DFS, etc.

2. Resource size and life of mine at, e.g. maximum possible capacity of production,

3. Mineralogy & crystallography, they define the complexity of the extraction process,

4. The extraction process; should be preferably an established process to shorten the current critical time to production. This includes brine-based processes, e.g. with a conversion to Li-hydroxide.

5. Geopolitical location, being relevant for all aspects of compliance aspects and supply security

6. Other aspects such as ESG etc.

For an OEM as well as its supply chain, relying on the availability of raw materials a Lithium project’s time to market is insofar extremely critical as idling executed investments will be detrimental to the planned feasibility of the investments throughout the executed downstream supply chain and be seriously damaging for the OEM.


I expect the Koreans to pursue a majority interest in PLS, or at least the Pilgangoora Project. We score high marks for all 6 points (the recent refinance underlines point 6), listed above. We have spent 2.5 years (and the 2019 & 2020 losses) in developing our extraction purpose for our resource mineralogy. Expansion now can be just a copy and paste of our present process. Other miners are years behind us. POSCO is using our Spodumene to produce the highest quality Lithium Hydroxide on the market today.

The Wodgina and Kidman sales were for undeveloped resources, surely there is meaningful additional value in our now refined process?

Securing Stage 1, will give the Koreans full integration of all stages of the EV manufacturing process. Their costs would be relatively minimal at all stages.