PLS is the largest single product Lithium mining company in...

PLS is the largest single product Lithium mining company in Australia. They are a large profitable, well run company. They are the benchmark. The spreadsheet below takes this benchmark and takes a 1/8th and 1/10th slices of key metrics which vary with scale and considers how Core compares.

On many metrics Core has either has already got to, or has the potential to get to 1/8th or higher of the scale shown by PLS. The biggest operational gap relates to Ore Reserves. The release of the BP33 feasibility study will close part of that gap because the 10.6Mt Ore reserve figure only includes 3.9Mt re BP33. Carlton's ore resource is now 2Mt higher than at the last feasibility study so that updated study would help. Fully closing this gap to 1/8th or 1/10th of PLS would require Core commencing and completing a feasibility studies regarding many smaller deposits or on Booth / Lees (14.4Mt @ 1.11%).

It will take strong, competent management that focus on restarting Grants and then getting BP33 not just operating but operating well to mean valuations close to 1/8th to 1/10th of PLS's MC are sensible. If Core starts to have multiple metrics exceeding 1/8th of PLS then valuations higher than this may be appropriate but that can be considered after Core has restarted and is firmly underway within the write-down, restructure, recovery element of their journey.

Currently a discount to 1/8th or 1/10th of PLS MC is undeniably warranted. Core's MC less cash at 1/78th of PLS MC less cash would appear to be an overly large discount. While Core's recoveries are below PLS's there would appear to be potential to increase them to above PLS's by either finding different perhaps deeper ore behaves better, or adding additional concentration plant such as back end flotation.