Extract taken from Argonaut research report"We recommend a...

Extract taken from Argonaut research report

"We recommend a Speculative Buy for LLL and assign a current valuation of $2.18 per share
(previously $1.56). Without our Social License Risk discount our valuation would be
$3.55ps. The Goulamina deposit hosts one of the world’s premier hard rock spodumene
Resources. The project is funded for development, with commissioning of the process
plant expected to begin in the second half of 2024. The demise of Morila SA may have
repercussions for LLL and we account for this risk in our valuation.
Key Risks
Morila SA Insolvency
We view potential repercussions from the failure of Morila SA to be the biggest single risk
to LLL’s value. While separate corporate entitites, LLL was spun out of FFX shortly prior to
issues being flagged at the Morila Gold Mine. Mining contractors and other creditors are
expected to be owed tens of millions of dollars by FFX’s former subsidary Morila SA.