Ann: Goulamina - Progressing a World Class Lithium Project, page-197

I agree it is undervalued at present, but our scheduled future production for LLL is currently only 174.4k t/a based on LOM plan as per existing DFS. This will change with upgraded DFS, but that is an extra value to be added when that DFS is delivered.

The African discount will reduce when we are producing consistent income from whichever mine. For now IMHO it exists as a higher percent discount because it will take time to get into production.

The African discount is a perception by market participants on average. Things like sudden changes in govt regulations taking a large percent of profits or ownership of mines seems greater in Africa. However we have great risks everywhere. Just last year the WA govt banned any Perth Basin gas company from export (except Beach/Mitsui from Waitsia), which instantly reduced the future possible valuations of gas explorers in Perth Basin.

IMHO the more that gets produced from Africa across the board the lower the African discount will become. Of course it is in African countries interests to lower the perceived risks by reducing unexpected changes to rules, taxes etc, and I think they are realising this.

Because of the discounts that are applied by the market to us, is one of the main reasons why I think just continuing to tick boxes and get both these mines up, running and profitable will add a lot of Mcap in the future. We will reduce the discounts by just a lot of work and time.

The biggest worry to me are black swans in the market in general, and both the lithium and gold markets as well, but that same 'black swan risk' applies to every investment, in these minerals, so nothing anyone can do about it if you want to be invested in these minerals.

We are not in production yet for lithium, so of course there should be a discount to a current producer like PLS, because the possible black swan could prevent us from becoming a producer. This discount reduces as we get closer to production, which is still 1-2 years off for lithium.

From my very first post on MLL 31/8/20 the day the Morilla deal was announced ....
"For me this is a simple risk reward play, the risk is the deal falls over for some reason, so the downside is probably 4-5c/sh while the reward for success is probably multiples of the current share price, so I bought this morning."

As the company kept ticking boxes I kept increasing my holding, because each box ticked reduced the risk further. We certainly don't have as many upside multiples at 65c compared to 17.5c, but the risk of say the lithium deal falling over would only be 10-20c downside, while as it advances we will probably go closer to the $600+m for just LLL alone. Each step should add value, but this will vary over time as the market does it's usual manic/depressive mood swings.

Sorry for the long Sunday afternoon post ramble...