Prepayment

"April 2017, the Company signed a prepayment agreement with a 100% owned subsidiary of Burwill Holdings Ltd (Burwill), a co

mpany listed on the main Board of **promotion blocked** of Hong Kong Limited (stock code 0024). No interest is payable in respect of the prepayment and it is unsecured. Tawana shall repay the outstanding prepayment through 15% of the value of each shipment of lithium concentrate until such time as Burwill has been reimbursed in full for the aggregate amount of the prepayment."

Mar qtr

Prepay (TAW) = $12.5m

Sales (group) = 0dmt

Jun qtr

Prepay (TAW) = $11.7m (-$800k)

Sales (group) = 8859dmt

Revenue (group) = $0.8m x 2/0.15 = $10.66m

Revenue (TAW inc. pp) = $5.34m

Revenue (TAW ex. pp) = $4.59m

Revenue (TAW ex. royalty) = $4.31m

Revenue (TAW qtr report) = $4.31m

Li2O sale price = $1204/dmt

Sep qtr

Prepay (TAW) = $10.2m (-$1.5m)

Sales (group) = 18670dmt

Revenue (group) = $1.5m x 2/0.15 = $20m

Revenue (TAW inc. pp) = $10m

Revenue (TAW ex. pp) = $8.5m

Revenue (TAW ex. royalty) = $8.08m

Revenue (TAW qtr report) = $9.37m (+$1.29m)

Li2O sale price = $1071/dmt

Tantalum sales (group) = 41000lb = 18.6dmt

Revenue (TAW) = $1.29m

Revenue (group) = $2.58m

Revenue (group inc. royalty) = $2.71m

Ta2O5 sale price = $66/lb

Dec qtr

7th-Oct 10336dmt Li2O

18-Nov 12100dmt Li2O

Base case revenue (group) = 22436 x 1100 = $24.68m

Prepay reduction (TAW) =$1.85m

Prepay (TAW) = $8.35m

Revenue (TAW ex. royalty) = $9.96m

Tantalum sales (group) = 23dmt

Base case revenue (group inc. royalty) = 23 x 2200 x 80 (estimate) = $4.05m

Revenue (TAW ex. royalty) = $1.92m

Tantalum sales (group) = 400wmt

No calculation performed...

Therefore, current TAW revenue to date in Dec qtr likely exceeds $12m. Assuming another Dec shipment (~12000dmt) and further Ta sales (~23dmt), we should see Dec qtr position of:

Revenue (TAW) = $19.13m

Prepayment (TAW) = $7.36m (-$2.84m)

TAW had $11.4m cash on Oct-01, plus $20m loan ($10m for fines, $5m to repay debt, $5m working), plus another $20m loan for merged group, plus AMAL balance sheet.

Hopefully all my calcs make sense...please correct if there are any errors.

My conclusion is things will improve progressively:

 - Strip ratio reduction

 - Higher grade ore is fed to plant

 - Highet recovery

 - Higher utilisation

 - Fines recovery

 - Tantalum offtake agreement

 - Prepayment fully repaid (mid 2019)

 - Removal of merger activities and fees (though ~$10m WA stamp duty payable in 2019)