LKE towards TOP-5, page-4668

Good morning Lakers,

An amazing announcement of offtake MOU with FORD…an honor and privilege to be partnering with such a reputed OEM. Ford was #4 in 2021, based on revenue.

Yes, MOU is the first step but in my opinion we will hear more on Hanwa and FORD offtake within the next couple of months. My expectation (pure speculation) is for FORD to be a strategic partner not only for Kachi but also with at least one other brine projects Cauchari, Paso or Oraloz. If and when that happens it will have a huge impact on valuation.

With Hanwa and FORD, Kachi base case 50,000 tonnes is SOLD OUT. We have another 50,000 tonnes based on LKE “Target 100” program but my gut feel is we may see a further increase on the target production once drilling is done and new resource estimates are disclosed. My ambitious production target expectation is 150,000 tonnes per year by 2028/30.

RED CLOUD (RC) along with other brokers have come up with revised target price. RC price is $3.15 BUT that’s based on PFS pricing of $15.5k/tonne LCE but we all know how much ALLKEM charged its customers last quarter, ie $35k/tonne. Had RC used latest contract pricing of $35,000/t, their LKE TP would have easily exceeded $7.

As per RED CLOUD, future catalysts are;
- Finalise HANWA offtake (April, within weeks)
- Finalise FORD offtake (Q2, within a couple of months)
- Commissioning of KACHI demo plant (Q2, within a couple of months)
- Resource update and KACHI ESIA (Q2, within a couple of months)

If and when these announcements get released within the next couple of weeks & months, we would be marching towards $3 plus. There may be fluctuations on SP on a daily basis, based on certain macro factors but by end June ‘22, I reckon we will get to $3 plus.

We are on a winner Lakers