Ann: Manono Lithium and Tin Project Expansion Scenario Update, page-9

For context; At the same margin from the DFS.

4.5mtpa operation producing
SC6 Opex = 371usd/t
SC6 Revenue = $673 usd/t
SC6 Margin = $302usd/t
Throughput = 547,000 t/a of Spodumene Concentrate 6%
Annual Profit SC6 = 165M USD

PLS opex = $2662 usd/t
PLS revenue = $7355 usd/t
PLS margin = $4693
PLS Throughput = 45,375 t/a
Annual Profit SC6 = 213 M USD

10mtpa
SC6 throughput -> 1,215,000t/a
PLS throughput -> 100,833t/a
153000kt/a of SC6 to make 45375t therefore 3.37t of SC6 to make 1t of PLS.
Convert new PLS tpa back to SC6 = 340,000t SC6.
Total SC6 Production = 1,554,000.
SC6 profit = 469M USD p/a.
Take 51% ownership = 240M USD p/a
Convert to AUD = 320M AUD p/a.

PE ratio of 10 = 3.2Bn for AVZ at 51% ownership.
PE ratio of 20 = 6.4Bn for AVZ at 51% ownership.

There is upside in the SC6 price as this is based on less than 700usd/t.
Discounted free cashflow model would better represent the above whereby you would need to assume a larger upfront capital cost and relevant infrastructure upgrades.

Irrespectively, the 10mtpa provides reasonable upside with lower intrinsic risk in terms of increasing complexity of process circuit.

I have always stated (for 3-4 years that 10mtpa should be the end goal). When you have smaller scale resources sometimes it's better to optimise the end product. When you have a miners dream (400mT of low strip, homogenous, open cut mine you can support a 40Y LoM at Roche.

Run the same at carrier d'lest and worry about downstream processing down the track.

The only item which inhibits the 10mtpa or 20mtpa strategy in a 5-10 outlook is whether the infrastructure is there to support it and IMV is partially the reason intermediates were investigated. (along with the economical uplift).

Extremely robust operation, lets hope the team can meet the rest of the goals in the short/medium term.

SF2TH