Ann: Phase 1 HMW DFS Delivers Compelling Economic Results, page-286

Hi paulgf,

"We are going to have to agree to disagree Smith71"
Definetely YES, but that's exactly why I post here, to benefit from other views.Where there is a protagonist, there should always be an antagonist, otherwise it becomes one-sided.

If I understand your view correctly, was 50 million 2 years ago, enough capital to fund 3 projects to a DFS within that time period?
Allow me to ask you this question, "Leaving aside the timing issue and the staffing capacity required, how much capital would a full exploration, with a required much higher number of wells on Candelas and Greenbushes have cost?". I believe that the sum of 50 million would not have been sufficient for exploration costs.
My expectation of strong management is that good strategic decisions are made. Furthermore, I expect strategies to be changed based on facts, readjusted if necessary, and evaluated to achieve the greatest possible success.

Two strategically correct decisions were made for this:

• Li-Cl strategy
• Prioritization of projects

The factual bases were the drilling results of HMW and Candelas and the information about the hydrogeologic nature, resource boundaries, infrastructure etc. Both are gigantic resources. Both are gigantic resources. As I said, I assume that the management of Galan assessed it the same way as I did in the last two years, namely that the capital was not sufficient for the simultaneous development of both projects, but also at the same time did not want additional dilution via CR, so to keep the capital investment as low as possible as well.

Decision: "We want walk, before we run!"Necessary prioritization, according to aspects such as infrastructure, resource quality, schedules, etc.

1) Flagship Hombre Muerto West (Goal: fastest possible DFS)
2.) Candelas
3.) GB-SouthSome

results/reports in the last 12 months:

· 01 August 2022 Greenbushes South Exploration Update

Cash on hand at end of quarter was ≈A$54 million

· 24 October 2022 SPECTACULAR 2.5x INCREASE IN HMW RESOURCE – NOW 5.8MT

LCE @ 866 mg/l Li and Cash on hand at end of quarter was ≈A$47 million

JP: „The entire Galan team is aligned towards maximising the future benefits of this flagship asset, and our broader portfolio.”

· 13 December 2022 Galan Moves To 100% Ownership of Greenbushes South

a $ 3,000,000 binding agreement, to acquire Lithium Australia’s remaining 20%,

As I said, I expect management to make strategically sound decisions. This was one of them. And to be honest, 3 million is really not much.

• 
  

· In January 2023, HMW had continued to a Measured Resource of 4.4 Mt LCE @ 886 mg/l Li and Cash on hand at the end of quarter was ≈A$38 million

· 01 May 2023 HMW PROJECT RESOURCE INCREASES TO 6.6MT LCE @ 880 mg/l Li (72% IN MEASURED CATEGORY) (btw: Third significant resource upgrade since March 2020) and

Cash and investments at the end of quarter ≈A$28 million

JP: “This latest increase in the high grade, low impurity HMW Resource highlights the potential enormity of the brine resource that sits within Galan’s 100% owned tenements in Argentina. We have continued to acquire tenements and continued to drill holes since our maiden resource was announced at HMW. The initial HMW resource in March 2020 was 1.08Mt LCE @ 946Mg/L Li. This now sits at a world class size of 6.6Mt contained LCE at 880mg/l Li. Coupled with our Candelas resource, Galan has a very solid foundation, and more importantly confidence, that its Hombre Muerto Salar resources fully support its four-stage lithium production target of up to 60ktpa LCE.”

All this culminated in DFS 1 for HMW

• post-tax NPV8% of US$460m
• IRR of 36
• Free cash flow of US$54m per year, facilitating Galan's funding for further expansions.
• initial 5.37ktpa LCE
• Approximate 2 year payback
• high quality, 6% concentrated lithium chloride

After these results, I would like to ask a rhetorical question:Was the use of funds correct and appropriate?


paulgf, we have different views, like I don't understand mondyinvest assumption of probable 100% dilution of future capital requirement at all, and I would like to emphasize, that I read your posts with utmost respect because they are based on sound thorough research. Comparisons of drilling results between Patriot and an under-prioritized project like Greenbushes-South should not be taken seriously.
As I write these, I am just wondering if we, especially me, are not getting too small minded when I look at the STATUS QUO from the company compared to from 2 years ago and look at the bright future prospects.

The thought I took away from the 121 interview, that a carbonate plant may not be at all purposeful, won't let me go.

As Apprjojo says, a little patience yet....

LIQUID SPODUMENE!

DYOR and have a nice evening

Smith71


Sorry for the sometimes wild formatting

Smith71

GLN Price at posting: 88.5¢ S