Thanks Von. Very comprehensive. Have a great nightt

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22/03/18

18:39

Post #: 31959619
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Originally posted by Von Yeol ↑

Hi All,

I attended today's presentation at the battery conference, my company had a spare ticket

Some interesting questions were asked during the Q and A session, Mark did a good job.

My key takeaways:

1) Mark alluded to Spinco enabling the merger of AMAL and TAW to happen more simply from a corporate perspective i.e. two equal halves merging together, hard to value Cowan's potential at this stage
2) Mark said I quote "the merger is definitely being considered after the recent departure of AMAL's CEO"
3) Mark was planning to do the 2nd phase of DMS circuit in 6 months, but Chinese want it yesterday, they will most likely do in a month or two (seek funding) after the plants performance is better understood , will only cost ~30M and can be funded through pre-payments debt free
4) First shipment of Spod will occur in April, followed by once a month (said would be between 10,000 and 15,000 tonnes, so look out for that)
5) Mark reiterated that the last reserves update occurred in July last year, they didn't finish drilling until October last year, therefore the 3-4 months of drilling will allow them to announce a significant reserves upgrade in April
6) When the fines circuit gets commissioned later this year, their all-in cost will reduce to 300-350 from 500, this will further be lowered if DMS 2 circuit gets built
7) The ramp up of the plant was announced to take ~3 to 4 months, Mark said that the Primco team (now operating team) have similar KPI's in terms try to reach full production the quickest. Mark said "everyone’s bonuses are aligned in the right direction” and advised he imagines this time frame to compress
8) The exploration team have been focused for the last 6 months on drilling water holes at Bald Hill, most incurred significant Lithium Pigments. Mark said this indicates the resource upside in this area is huge.
9) The Tantalum credits diminish after ~6 years, but as they move out in terms of mining, the lithium grades improve and tantalum grades decline, but the tantalum credits are only worth between $US50 to a $US100/t in terms the better lithium grades will compensate this

All sounds positive with plenty of good news coming in the next 3 months!

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Thanks Von. Very comprehensive. Have a great nightt

TAW Price at posting: 45.0¢ Sentiment: Buy Disclosure: Held
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