Running discussion on SP, page-658

	Column 1	Column 2	Column 3	Column 4	Column 5
1
2	Peer Comparison Resource and Market Cap	MT	$M	%
3		Resource size	Market Cap	Grade
4	PLS	156​	1390​	1.25%​
5	GXY	11.62​	1238​	1.20%​
6	KDR	189​	670​	1.50%​
7	AVZ target	1200​	420​	1.50%​

Peer Comparison Resource and Market Cap

Intercept results mainly 200m+ from number of early holes

Assumptions
Excluded non hard rock resources eg GXY Brine
Obviously different stages of development
AVZ a conceptual target only

Undervalued based on conceptual resource size not JORC yet
Immense potential from early drilling remarkable strike rate
Homogenous style deposit = predictable
Conceptual target does not look unrealistic
Open at depth potentially more resource than 1,200MT conceptual target
Size matters high strategic potential
Economies of scale
Some companies may face risk of not enough easily minable resource to support/extend mine life
Hence need to pursue further expansion drilling

Avanco Ozminerals T/O offer 100%+ premium to last traded price, mark ups possible in current market
Example of what holders could be face with overnight at some stage
Similar value deal would put AVZ close to 40-50c bracket
Accumulation trading pattern in recent months leave this type of outcome as a possibility
KE and ML heavily invested IMO would look for best deal for holders
Any potential take out will first need management/consultants on board
Would help it get across the line with holders
JV Mining a possibility for longer term value
Whether under the current entity structure or a new vehicle who knows?

Broader Macro 2018 on downtrend
EV Batteries a sunrise industry set to boom further
Broad macro environment could continue to temper sector for short-mid term
Key to value is showing path to commercialise and taking steps to execute
There are doubters and believers, each to their own. Those who believed in 2017 were rewarded greatly.
Asset Masterpiece
Needs Masterplan