Phoenix Water - PXW - Lithium - 100x, page-662

Any idea why their reserves are so much smaller than resource size?

From the "Allkemand Livent to Create aLeading Global IntegratedLithium Chemicals Producer" 10 May 2023 presentation;

Combined brine resources (I only looked at those of significant size).
Olaroz and Cauchari combined have a resource of 27Mt LCE but NO reserve.
Sal de Vida has a 6.851Mt LCE resource but only 1.74Mt of reserve.

They also have hard rock resources of 167,000t LiO2 (417,000t LCE) and 56,000t LiO2 reserve (140,000T LCE).

Total resources are around 34Mt LCE (a little less than three times ours) and reserves add up to around 1.9mt LCE.
If or when they convert some of those large brine resources to reserves, the market cap could increase further.

Current market cap of Alkem is A$9.35bill or US $6.11bill and Livent is US$4.22bill. Combined mc is US$10.3bill.
They plan on producing 248,000tpa LCE by 2027 and around 90,000tpa LCE this year.

So their resource size is getting close to triple ours but their reserves at 1.9Mt are not much higher than ours - expecting 1-1.5Mt. I think their mc at $10bill bodes very well for Phoenix to be at least $2-2.5bill when comparing resource and especially when comparing reserves assuming ours does come in at 1Mt LCE or more. They would have a premium for being a producer now but Phoenix has the USA advantage to partially offset that.

One of the brokers from CPS mentioned Compass in the webinar. They are in the US and have 2.4Mt LCE with a $1.4bill mc. and Standard Lithium 2.8Mt with a billion mc. Nick said we can't extrapolate that with 6 times the resource we would be valued 6 times higher because they are more advanced but those numbers also bode very well for our valuation to be at least $2-2.5bill.

The suspense and anticipation!

No reserve yet but a very big proportion in the indicated category.

East Brawley has:
• A total mineral resource of 12.4 Mt LCE
• An indicated mineral resource of 8.3 Mt LCE; and
• An average lithium grade of 437 mg/L