CTL Broker Message21 Apr 2023 11:39
Dear All, Disclosure - FDC is the broker to CTL, FDC is a shareholder, I am a personal shareholder, several of family are sharedholders. I am not party to any inside information - There are my views, they should be considered investment advice. - Back to basics - Lithium Demand fundamentals remain the same - in the last 12 months, we have grown form a resource of 500k to 2m tonnes. laguana verde increased from 500k to 1.5M. Francisco had an initial well with 500k (this was low and would of been over 700k but was constrained on one side) we have drilling results expect in the next 60-90 days. we have two wells on Laguna verde that I hope would increase the resource to circa 2M, we have 3 wells on Francisco basin that should end up circa 2M. We have the initial well on Llama that could lead that assets to being larger than the other two. We have the pilot plant in country before end Q2 and we start to produce 1 ton a month which we can start to send to all the industrial companies, Battery manufacturers and automotive companies. On a valuation basis we are still at less than $20 a ton in situ value, the peer group is north of $100. If you look at Lake in argentina they have 4.4M however they have given away 25% to their technology partner they are still valued today at A$633. roughly GBP 340m, around $120 per ton. They are around 18 month ahead of us in development. There is discussion around dilution, here is the timeline, we have results over next 3 months. we have pilot plant, we have 2nd scoping study due on Francisco Basin, we are funded to the end of the year. 2024 we do the definitive feasibly study and and start to look at partners, you would now look to fund the equity until late 2024, by then we should expect to be 3-5 times the value today. The announcement we believe is about wanting to partner with Lithium companies, from what I understand there will be a public private partnerships , the state maybe taking 10% interests etc, they are not going to private existing companies, or nationalise wider sense. This is very common in a lot of mining jurisdictions around the world. Govts know they dont' have the skill set to run all the projects. I have had several client call today and they have been buying. we are seeing large volume already at 1.8M shares. I president I understand is making is full announcement for how they want to lithium industry to proceed.
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