Hi fnqricko,I can see where you get that idea from. Page 1 of...

Hi fnqricko,

I can see where you get that idea from. Page 1 of the LPD entitlement offer for Desert Lion does highlight the acquisition of a “partially developed lepidolite concentrator”.

I hit a brick wall when i look at the LPD Annual Report 2020 (pg74) where LPD recognises $2.3m worth of “assets under construction” (i.e. the partially developed concentrator) acquired from Desert Lion … and then immediately impaires those assets to zero (i.e. a complete write off).

Firstly, that complete write-off is circa 14% of the total consideration paid to acquire Desert Lion assets from Desert Lion shareholders. It is a significant portion of value that LPD management thought it was buying that turned out to be worthless. Mistakes do happen but that is pretty bad.

Secondly, it seems to leave LPD shareholders wondering how beneficiation of lepidolite ore (only implied by the recent company update) could be done when the “partially developed lepidolite concentrator” we are talking about has already been written down to zero by LPD management.

I accept that my understanding of how the beneficiation could be done is poor. Have I missed a recent development? Perhaps LPD management has another way to beneficiate the Karibib ore without using the acquired asset? Any thoughts would be appreciated. Apologies if I have made a schoolboy error.

AM74