2022 price target, page-2

Hi JC134,

It’s an interesting question, 2022 is quite far away, but I will give my base case andbull case estimates.

In both scenarios I think these things will be likely to have happened by the end of2022 for all brine projects:

·DFS ready

·Onsite pilot plants ready

·Offtake partners announced

·Construction finance selected

·Construction ongoing

Catamarca will be either sold by that time, or will remain as a strategic holding. I amnot calculating any value for that, as it is quite unclear to me what willhappen.

I assume that Opex will be $1k USD less per tonne than in the latest Kachi PFS due to partiallyusing solar energy, and cost effectiveness due to larger project sizes.

I use 1.5billion shares for the calculations, it could be more, it could be less, butthis sounds reasonable to me. I assume 1.3 USDAUD.

1. Base case estimate

In this scenario I assume that

·theLithium prices will not rise further. 99.9% LCE will be at $16.5k USD liketoday.

·Kachiwill be designed for 50 ktpa production,

·Caucharifor 25 ktpa,

·Olarozand Paso all together for 25 ktpa. Note that the combined area of Olaroz andPaso is about 11 times bigger than the area of Cauchari.

In thiscase we would have the following approximate post tax NPV8 values:

·Kachi:$4B USD

·Cauchari:$2B USD

·Olarozand Paso: $2B USD

At thatstage I would say that a company valuation of about 70-80% of the post tax NPV8would be reasonable. That would mean a MC of $5.6B - $6.4B USD, or $7.3B -$8.3B AUD.

SP would be $4.8 - $5.5 AUD in this case.

2. Bull case estimate

In thisscenario I assume that

·theLithium prices will rise 20% further. 99.9% LCE will be at $20k USD.

·Kachiwill be designed for 200 ktpa production, this would mean that the resourcesize would be upgraded to be near the lower range of the targeted 8-17mt

·Caucharifor 25 ktpa,

·Olarozand Paso all together for 25 ktpa. Note that the combined area of Olaroz andPaso is about 11 times bigger than the area of Cauchari.

In thiscase we would have the following approximate post tax NPV8 values:

·Kachi:$21.3B USD

·Cauchari:$2.66B USD

·Olarozand Paso: $2.66B USD

At thatstage I would say that a company valuation of about 70-80% of the post tax NPV8would be reasonable. That would mean a MC of $18.6B - $21.3B USD, or $24.2B - $27.7BAUD.

SP would be $16.1 - $18.5 AUD in this case.

All imho, DYOR.