Congrats and well done to our management team!I've just finished...

Congrats and well done to our management team!

I've just finished reading the DFS for the 8th time, and each time I read it I get goosebumps thinking about what lies ahead.

Some very impressive callouts -

• >100% jump in NPV
• > 80% IRR
• conservative Li pricing (< $1000)
• >80% recovery
• Stage 2 > 800ktpa to be commissioned in 2025

I've read all the respectable DFS for Li companies and believe this one ranks up there with worlds best and without to many peers. It cements my conviction that we continue to be on a journey that has all the potential of being a life changer (IMO) for those with a horizon of longer then the next announcement. My strategy is to buy and hold at this stage until this time in 2024. At that point with all things being equal we should be generating revenues between US$570m - US$980m pa, using my assumptions only & ownership of 80% & 40% respectively for each business. Now what sort of MC's will that command!?!?

Base Case -
Gold -

• 160oz @ US$2000 = US$320m

Li -

• 200ktpa @ US$1250 = US$250m
• Total = US$570m

Likely Case -
Gold -

• 160oz @ US$2500 = US$400m

Li -

• 200ktpa @ US$2000 = US$400m
• Total = US$800m

Optimistic Case -
Gold -

• 160oz @ US$3000 = US$480m

Li -

• 200ktpa @ US$2500 = US$500m
• Total = US$980m

(the above doesn't take into account any increase in production for Gold or Stage 2 for Li)

The costs blow out as others have pointed out where to be expected, I forecast a 20% increase which is about right when looking at Stage 1, $15m of the increase is upfront for Stage 2. I expect this to be covered by both parties via debt or a raise at IPO, no biggy when you have an IRR of >80%. I knew they were keen to expand but this timeframe says to me, we see ourselves as a 4Mtpa producer now with stage 1 just to help with a steady ramp up to full production over an 18month period which is very ambitious in the Li processing space. IMO I reckon they want the full production sooner rather than later, I refer to the 3rd dot point under 'Opportunities' - "The supply and installation of the ball mill is on the project critical
path so expediting the procurement can potentially reduce the schedule".

So, a very good announcement, exceeded my expectations, and the dip in SP was simply a transfer from the impatient to the patient, don't be fooled accumulators are hard at work, they ain't getting mine.

Best wishes to all holders!