Beer & Co

I imagine we will get a report next week. It will be interesting to see what they come up with.

Their methodology centres on the value of Pilgangoora. Not too much for TT, although that may change!! In their last report, they had a value of $131m for Pilgangoora indicated (64.3kt of lithium and 3.1m lbs of tantalum), and $16m for Pilgangoora inferred (172.8kt of lithium and 8.2m lbs of tantalum). They apply a risk factor to their gross calculations- 60% for indicated and 40% for inferred. Indicated is lower risk, hence they are saying 60% of the gross value for that and 40% for inferred.

The recent resource upgrade gave us:

100kt indicated lithium and 5.5m lb of tantalum
568kt inferred lithium and 10.2mlb of tantalum

They seem to ascribe a far higher value also to the indicated - 15 times!! So far higher value plus a smaller risk quotient. (Blastfurnace can educate us all on this aspect I am sure)

So, it depends whether they reduce the risk quotient, as to how this might calculate out. I notice that they reduced the risk quotient on the indicated over the past few months from 50% to 60%. If they went to say 70% (indicated) and 50% (Inferred), I think we would add around $106m for the indicated to the overall value and around $51m for the inferred.

Putting all else to one side, that should provide a valuation of around 43.5c

Note, if all that inferred resource were in the indicated category, the valuation goes to around $1.85!!!

Happy days folks

I look forward to the Beer & Co update.