Ann: ADVANCED IN PRODUCING BATTERY QUALITY LITHIUM CARBONATE, page-46

For those that have not seen this. Interesting report. Worth a read. (link below)
Valuation of 29c

Lake looks incredibly undervalued
Orion Capital
Ø Trading at less than 2% of the Kachi post-tax NPV8, Lake Resources looks
cheap both in absolute terms and relative to peers
Ø Valuing the Kachi project in line with peers, and the company’s other projects at
A$25m, suggests a valuation of A$0.29 (29 cents) per share
Ø There is huge upside potential to this valuation from further developments at
Kachi, from developing other projects, and from a recovery in the lithium market

https://lakeresources.com.au/wp-content/uploads/2020/05/lake_resources_2020_05_26_orior-capital_v1.pdf

Valuation of 29 cents
Valuing the Kachi project at 15% of NPV8, broadly in line with the current market valuation of
Standard Lithium, and the valuations of the Orocobre – Advantage Lithium deal and the Pluspetrol –
LSC Lithium deal, suggests a current valuation for Kachi of A$172m. Valuing Lake’s other projects at
say, A$25m, suggests a valuation of A$197m, or A$0.29 (29 cents) per share. This is ~9x the
current share price.
Figure 3: Lake Resources valuation of A$0.29 (29 cents) per share
Project Methodology Value
A$ m
Kachi 15% of NPV8, A$1.535:US$ 172
Other projects 25
Enterprise value 197
Net cash 1
Market cap. 196
Shares o/s, millions 671.5
Value per share, A$/share 0.29
Source: Orior Capital