LRS General Discussion, page-12507

I conducted an extrapolation study, comparing Sigma Lithium to Latin Resources. Looking at Sigma's current market capitalization (MC) of 6 billion AUD, Latin Resources, which currently has a MC of 1 billion AUD, could potentially follow a similar growth trajectory over the next two years.

In December 2022, Canaccord Genuity suggested that Latin Resources could potentially follow in the footsteps of Sigma Lithium. This was before a string of announcements that could have further impacted Latin's potential growth.

It's noteworthy that Sigma Lithium is already producing lithium. In April 2023, Sigma received its operating license from Brazilian regulators, and it began production of battery-grade sustainable lithium concentrate a month later in May 2023. Sigma's Grota do Cirilo project is projected to produce 270,000 tonnes of lithium annually, and the company has plans to reach full production capacity this year, 2023.

If Latin Resources follows a similar growth trajectory, we could anticipate it starting lithium production by 2025, but there's a strong case scenario where production might begin as early as 2024.

Assuming Latin Resources meets all milestones and targets, and continues on the same growth path as Sigma, it could potentially see its price increase six-fold by August 2025. This would imply a stock price of $2.4 AUD per share, with a market capitalization of 6 billion AUD, up from its current stock price of 40 cents and a 1 billion AUD MC.

However, it's important to note that these predictions are speculative and subject to market forces, regulatory approval, production capacities and other external factors that can significantly influence a company's growth trajectory.