Ann: Equity Capital Raising Presentation, page-98

The calculation of dividends was popular so out of curiosity I've re-run the numbers for a few years down the track when, fingers crossed, our KV Lithium hydroxide mono-hydrate (LHM) plant comes online. As TO says, the financials are compelling to continue to investigate this downstream processing option.

From my earlier post, we should expect a dividend return of around $0.17 per share from SC6 sales. I expect this to be reduced to fund the LHM plant so we may not reach this level of return whilst selling SC6.

Updating this from the 11 Nov 2021 DSS on this subject we see the ~23 years Life of Mine Free Cash Flow jump nearly three-fold from SC6 production $A12.2B to a massive A$32.4B resulting in a cool A$1.41B per annum (post tax) available for investment, growth & and a fair estimate of 70% returned to shareholders as fully franked dividends.

So, dividend per share (DPS) per year as calculated from the DFS based now on the LHM option where we are no longer selling SC6...

DPS = (FCF per year X 70% return) / SoI

DPS = ($1,408,695,652 x 70%) / 1,911,178,382

DPS = $0.45

By the numbers, if LTR goes the LHM path, our dividends would be 2.5x the SC6 returns.

Compelling indeed.