LKE towards TOP-5, page-1772

Good morning Lakers,

Yesterday’s announcement was very significant and we would only realise it’s importance probably in 12 months time when things fall into place with regards to Cauchari, Oraloz and Paso.

1. There is a firm commitment from LKE management to fast track “Target 100”
2. $15m allocated for drilling Cauchari, Oraloz & Paso
3. Seperate team identified for drilling and testing these brines
4. Drilling already commenced in Oraloz

Not many companies in the world be producing 100,000t LCE by 2030. For LKE management to fast track “Target 100”, IMO, they would have got support from potential offtakers to embark on this project. I reckon, we will get a clearer picture when LKE releases it’s first Tier-1 offtake partner, within next 4 months.

As indicated before, I am expecting advance cash payment from our offtake partner (which Steve mentioned in couple of conferences) which would facilitate Kachi 50,000t LCE expansion case. We may also have a couple joint developers for Cauchari, Oraloz and Paso. With lithium supply deficit expected to grow, EV and battery manufacturers must be looking for quality producers with ESG benefits.

Kachi demo plant has no relevance to Kachi DFS. DFS data input goes from Lilac pilot plant and even if there is a delay in Kachi demo plant, IMO, it may not have any impact on LKE releasing Kachi 50,000t LCE DFS by June ‘22. As usual, one or two are trying their best to create fear among HC members. Beware.

The macro geo political environment is not conducive but hopefully we will get to know the outcome of Russia vs Ukraine soon. Market doesn’t like uncertainty, hence until Russia/Ukraine issue gets settled we may see some volatility in the market. But LKE would march on. Good luck