AMAL announcements and articles, page-347

Why Tawana is a strong buy now.

My Investing Parameters Tawana (Projected)
Return on Equity > 15 % 158 %
Return on Assets > 8 % 142 %
Annual FCF Yield > 12 % > 40 %

Note :

• Projections on EBITDA and FCF by Canaccord Genuity
• Assume all share options being exercised
• Total Assets and Shareholders Funds as at 31Dec16

The above investing parameters have served me well over the past 10 years of investing in stock markets in Hong Kong, Singapore and Malaysia. My average annual return generated in my portfolio was over 20%. To-date return for 2017 is about 23%.

When I read the latest Canaccord report on Tawana, it literally blew my mind on the projected feasibility of Baldhill project.

Although I may not be familiar with the technical aspects of the project, I do understand well the financial estimates - IRR, payback period, EBITDA and FCF – which really excite me.

Supported by a positive industry dynamics on lithium, I have taken a good position on Tawana, with an intention to hold for medium term (subject to review).

There will be risks involved in any investment and for Tawana, these are the majors - projection errors, failure of Burwill to honour contract, sharp downturn in lithium price, product substitute (against lithium).

Please do your own due diligence before investing.