Reward vs risk, page-317

Some argued we shouldn't compare with non African projects, here's comparison with African peer,

A11, similar 50:50 JV, is still waiting for DFS to release, attributable resource is 0.55Mt LCE, compared with LLL's 2.2Mt LCE, but A11's market cap is $468m where LLL's market cap is $719m. LLL is substantially funded to production (so far it's on budget, so current cash is almost enough as LLL's capex requirement is ~US$40m vs current cash A$75.3m including reimbursement).

If that's is not enough, then ASX has another Mali gold producer to specifically assess Mali risk, RSG, made a loss last year, at gold spot price, they could make a net profit around $100m per year, forward PE is around 6. If based on current lithium spodumene concentrate price (SC6), LLL would make well above $1B net profit per year; if SC6 price dropped by 50%, LLL would make net profit of $512m on stage 1 and $840m on stage 2 based on 40% ownership; if SC6 price dropped by 75%, LLL still would make net profit of $372m per year and mining life is over 21 years.

At the worst scenario: SC6 at US$1,500/ton, PE at 6, ownership at 40%, valuation is around $1.86/share.



All imo.