As you all know, I've modelled HMW every which way! Assuming...

As you all know, I've modelled HMW every which way! Assuming they maintain the Phase 1 price assumption of ~20,000/t for their premium 32% LCE Chloride, and say ~US$400M total capex (just under 4 x DFS1 seems likely) and an opex improvement to say ~US$3700/t given economies of scale kicking in; I get US$2.9B for the NPV8 pre-tax and US$1.8B post tax. With my economic model well calibrated off DFS1, DFS2 is pretty easy to model accurately - just a function of capex/opex inputs (assuming price assumptions stay the same). Most importantly, I'm hoping for close to US$200M post tax free cash flow and my model currently spits out ~US$190M pa! WOW if we see near that!

These results above would be MASSIVE and validate the premium chloride strategy and Tier 1 nature of HMW! Not having to go all the way to battery grade carbonate is HUGE, its saves 1-2 years and removes start-up delays associated with qualification of carbonate product and avoids all the really complicated chemical processing (we get 32% LCE chloride with very low impurities from simply ~12mo in the sun and two reagent cycles = liming to precipitate out magnesium and Calcium Chloride to precipitate out the sulphate impurities). No evaporation flowsheet risk, no first of a kinds, all simple proven technology and chemistry.

Furthermore, LiCl can be easily converted into Li Metal for SS batteries, Li Carbonate for LFP, LFMP etc. batteries, or Li Hydroxide for high nickel batteries = OPTIONALITY = value for our interim product vs picking a battery type winner now. Galan retain the option, but not the obligation, to build a carbonate plant later. But of we get anywhere near what JP & Daniel think we will for our premium chloride (i.e. 70-80%), why would you ever bother going all the way to carbonate; the lower risk and higher margins are just too compelling with our chloride approach. There is also higher margins for converters with our chloride vs SC6 spodumene concentrate given lower conversion costs and the much lower feedstock per LCE tonne of our chloride (equivalent to 31% Li2O vs 5.5-6% in spodumene).

DID PEOPLE ALSO REALISE THAT GLN'S CURRENT RESOURCVE BASE (7.3MT @ 852MG/L) IS EQUIVALENT TO ~200MT @ 1.25% LI2O HARDROCK!! Yet Galan valued a pennies on any and all normal Li comps...GLN valuation has to be one of the biggest market disconnects I have seen in long my time investing and rest assured IT WILL CORRECT and CORRECT FAST & HARD once DFS2 numbers our out and properly digested and once financing/offtake sorted (no question a financing and offtake deal will get done soon).