Ann: Goulamina on Schedule Post Discussions with Mali Government, page-431

Macquarie rates LLL as Outperform (1) -
Leo Lithium advises its Goulamina agreement with Ganfeng has been revised and executed. After the provision of US$137.2m in funding, Ganfeng owns 55% and Leo Lithium owns 45%.

Macquarie is glad to hear that mining in Mali has resumed after a government-instructed suspension in July, and that the company has reiterated its first spodumene production is expected by the March quarter. But the broker adopts a more conservative valuation and raises its free carry interest to 30% after the Government of Mali passed a new mining code that allows it to take up to a 30% interest in new mineral projects.

The broker also observes that, since Leo Lithium's trading halt, share prices for peers have fallen roughly -25%.

EPS forecasts fall -20% to -40% for 2025 and later years.

Outperform rating retained. Target price falls -35% to $1 from $1.55 to reflect the company's changed equity position in Goulamina, and its lower earnings prospects.

Target price is $1.00 Current Price is $0.56 Difference: $0.44