Finally some good news. The updatet DFS is good but I am much...

Finally some good news.

The updatet DFS is good but I am much more interested in the offtake and equity transactions, even though I do not like the word "potential".

However I will not get to excited, but this time the share price should increase, if there is a fundamental deal for our remaining two third of lithium.
The management always mentioned our spodumene when they talked about offtakes. It would be great if there is an offtake also for our ultra low iron petalite from European or Asian customers, which should pay around 60% more then for spodumene, according to Benchmark Minerals Intelligence. But I have never heard of petalite offtakes.

We will run out of cash this December or in January/February 2020. I hope that the equity deal is something fundamental. A prepaid offtake would be the best of course, to fund the needed 163 Mio. CAPEX, at least a part of it, then go for a part of debt and also the African Development Bank. So we will finally be able to start building our mine.

The updatet DFS will help on funding and the offtakes as well. Since the release in November 2018 Prospect has achived some good improvements.

• Value Engineering Programe with e.g. the High Pressure Grinding Rolls
• Special Economic Zone
• 39% Ore Reserve increased (7th largest global hard rock lithium asset)
• Exemption from 5% un-beneficiated lithium export tax for the first 5 years of operation

This all will reduce the operating costs and CAPEX mentioned in the November 2018 DFS and increase the NPV and EBITDA.
The assumed life-of-mine average spodumene price of US$689/t and petalite price of US$457/t where used back then. It will be intresting to see what figures they will use now and how that will impact the improvements made, since the spodumene price has fallen.

Let's see if we get the announcement today or tomorrow.

This is my personal opinion only and it is not financial advice. Do your own research.