To satisfy my own curiosity I have put together a very high...

To satisfy my own curiosity I have put together a very high level cash flow estimate inresponse to some of the absurd posts about the possibility of cash burn leadingto further equity raise. I believethat idea to be nonsense, Let’s consider some back of the envelopecalculations based upon the known information from the company and compare wherewe are, and could be going for the rest of this financial year….I have usedsome common sense and very high level (arguably conservative) assumptions aboutpotential cash receipts against the existing cash on hand so as to consider LTR’sliquidity going forward.

The data hasbeen input to a spreadsheet of hypotheticalproduction and cash receipts through to 30/6/2025. Major assumptions are listed,and assumed pricing broadly reflects current spot Shanghai Metals Exchangenumbers with a premium allocated for the LTR offtake structured to consume someof the lithium processor profit.I consider the commodity price estimates to be very conservative.To determine a full cash cost estimate is well nigh impossible to do with confidence for a non-insider, so I have taken as my starting point the 10year average C1 cost from the September 2023 review, published here (https://www.ltresources.com.au/wp-content/uploads/2023/09/61171171.pdf), and added a 50% overhead to account for allextraneous factors such as increased costs during ramp-up etc.

SUMMARY

All currency in AUD equivalent		Estimated Production to 30/6/2025 (230,000 tonnes) See Spreadsheet		Total (rounded amounts to nearest whole number)
				Cash on hand/ Revenues	Cash out/ costs
Existing cash on hand as at 4/7/2024 after receipt of LGES funding (Long term funding presentation 2/7/24)				$501m
Less
Completion and commissioning (Long term funding presentation 2/7/24)					$120m
Budgeted cost for early ground works for 4mtpa (September ’23 review)					$26m
Provision for Working Capital and Corporate Costs through to positive cashflow (September ’23 review)					$152m
Cost Per Tonne Concentrate (September ’23 review)
Mining	$449	230,000 x $449	$104m
Processing	$157	230,000 x $157	$36m
G&A (Site Processing)	$39	230,000 x $39	$9m
Transport and logistics	$89	230,000 x $89	$21m
Inventory movement	$23	230,000 x $23	$5m
Sub total			$175m		$175m
50% per tonne concentrate cost premium during ramp-up					$88m
Possible other costs include Interest Expense and underground mining “declines” and “drives” to be capitalised			No allowance
Aggregate Cash Receipts for Concentrate (refer spreadsheet image)				$280m
Aggregate Tantalum Credit value (refer spreadsheet image)				$51m
Less Aggregate Royalties (refer spreadsheet image)					$20m
Net Estimated Cash on Hand 30/6/2025				$251m

[1]

The purpose ofmy analysis is not to provide anything other than evidence that cash on handand future cash receipts less costs from operations can readily be expected tobe sufficient to see LTR through this down point in the price cycle and to fullramp-up/steady state and positive cash flow. I am not claiming that thisrepresents a forecast and I do not want to state when we may reach a cashpositive and/or profitable state. There remain levers that management can usesuch as slowing underground development metres in future if they wish to limitcosts. We will have more information after the quarterly report for the periodto September is released in about 5½ weeks.We know we have top management that have responded with agility and brilliance to the various financial challenges while masterfully delivering the project as scheduled.

Regards

DF

[1]Refer to the following additionalsources of data

DFS (https://www.ltresources.com.au/wp-content/uploads/2023/06/61062133.pdf)

Tantalumtest work (https://www.ltresources.com.au/wp-content/uploads/2023/06/61065576.pdf)

KVproduction milestones continue 6/8/24 (https://www.ltresources.com.au/wp-content/uploads/2024/08/61219445.pdf)

LTRJune 2024 Quarterly Report (https://www.ltresources.com.au/wp-content/uploads/2024/07/61217666.pdf)

LTRLong Term Funding Presentation 2/7/2024 (https://www.ltresources.com.au/wp-content/uploads/2024/07/61214136.pdf)