Ann: Investor Presentation - February 2020, page-184

Hi guys, does anyone have a thought on how things can work if LTR sells the lithium and keep Rights to Tantalum same as GAM did?

As you know Ta is a REE and the demand is expected to increase exponentially while supply decreases. At some point Ta was $900k per tonne. And it was $300k per ton not many moons ago. What if the price of Ta rises to $300k per tonne or higher on strong demand?

Then the calculations below will change in multiples. Ta at KV could be a money maker in the order of $50-100m per annum over the LOM which could be more than 40 years. Unlike other lithium deposits, KV is endowed with a tantalising amount of Tantalum and high grades at that!!

cheers


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The 2018 price of tantalum was Us$151,800 per metric tonne.
Or AU$100/lb at fx rate of 68 cents to A$1
Assuming very conservative 50% recovery and LOM of 40 years (LOM expected will be longer than the 26 years in pfs due to substantial resource upgrade)
Assuming conservative margin at 30% (likely in the 60% due to relatively minor tweaking of DMs required.
Annual profit: :
43mt/2/40x$30 = A$16m p.a. at 30% margin over 40 years
Annual profit: :
43mt/2/40x$60= A$32m p.a. at 60% margin over 40 years