MIN TH, page-4

Hazer’s partnership with MIN could prove to be transformative for Hazer.

MIN are in a very strong position in the lithium space right now. They are currently selling 49% stake at Wodgina lithium mine which has been rumoured to be valued at around $3.5B. This would put $1.8B into MINs pocket which would enable them to build their lithium plant and other projects (including hazer).

MIN went into a trading halt after they had a telephone conference with investors Thursday and their share price rocketed. Sounds like good news in the pipeline for MIN.

If this is true, there could be greater focus on MIN and associated companies.

Lithium is flavour of the month and if Hazer was producing synthetic lithium, our share price would be double what it is currently.

Hazers graphite will have its time in the spotlight over the next 12 months - it’s just a matter of time. Synthetic battery grade graphite (99.9%+) increased by 10fold over 2017 and is currently at around US$18,000pt. This would result in MIN producing US$180m revenue from selling 10,000tpa of graphite in 2020. Hazer would stand to receive between US$12m to US$36m in this scenario, on the assumption anything above MINs price target of US$6,000pt would be profit, and the royalty rate being between 10% and 30%.

If hazer continued to operate a cash light business model and incur expenses of US$6mpa, hazer could have EBITDA of US6m to US$30m per annum (AUD$7m to AUD$40m) which at a 15x EBITDA represents a market cap of AUD$105m to AUD$600m. Fully diluted, this represents a share price of around AUD$0.80 to AUD$5.00.

And this is only the target graphite price, not taking into consideration additional graphite or hydrogen market (US$100b).

The main risk represents scale up. I have a lot of confidence in MINs ability to upscale technology and they are a huge backer of Hazer.

Looking forward to the next 12 months. Every scale up achievement is worthy of an increase in share price.