Newsletter: Minelife Update

Summary

We initiated coverage of Metalicity at a price around $0.025 during October 2015 – representing a current gain of 192%. Metalicity is essentially in the right place at the right time with respect to Admiral Bay. On a world scale, Australia is an ultra-safe place to do business from a sovereign risk perspective, an important consideration in terms of attracting the sorts of large-scale, longer-term investors that this massive project will require.

Resource upside is strong, given the current estimate encompasses just 2.1km of the currentlydefined 18km mineralised corridor. Potential project economics are also helped by the recent falls in the Australian dollar, which have helped support A$-denominated metals prices, whilst also lowering capex and operating costs.

On the lithium side of things, the recent Pilgangoora acquisition, along with the company’s other lithium licence applications, comes at a time of heightened interest in the lithium sector. Metalicity is therefore looking to drill-test multiple lithium-tantalum targets once further approvals are granted and initial reconnaissance exploration is completed.

Accordingly, Metalicity will remain firmly held in our Portfolio.