Ann: UPDATE ON COST REDUCTION ACTIONS, STRATEGIC PARTNER PROCESS, page-68

IMHO

If they reduced costs a further 30% on the already obtained 40% reduction of the December 2023 Quarterly expenditure, then Total relevant future outgoings (8.3) each quarter is

$27.255M x 0.6 x 0.7 = $11.45M

If they raise the capital noted in 8.5 then they’ll have $67.5M

$67.5M/ $11.45M = 5.9 Quarters

Run out of cash in Q2 2025 but will have to explain LKEs solvency going forward in the Q4 2024 quarterly.

If they don’t do the $36.2M capital raising noted in 8.5, then they only have what is in Cash (8.4) being $31.3M

$31.3M/ $11.45M = 2.7 Quarters

Run out of cash in Q3 2024 and will then have some explaining to do.

So they need that Strategic Partner’s cash preferably in the middle of Q3 2024 to avoid a raise but at the latest at the start of Q2 2025 or they’ll have to do a second raise.





The Q1 2025 Quarterly will let us know how much they have actually reduced costs by.

Also, can someone please remind me what LKE have to offer a Strategic Partner that hasn’t already been agreed with SK ON?

DYOR