The company supplies it’s products and services to a number of high profile customers including PANASONIC, TESLA, CATL, Apple, 3M, BOSCH and Dyson. The recent transition to a supplier of advanced battery materials and equipment and services to the global LIB market has positioned the company to take advantage of the rapidly growing LIB market.

We have revised our valuation upward, based on the ultimate 50% ownership of Maricunga, to a range of A$1.33 to $2.44/share, with a mid-point of A$1.88/share - our preferred valuation and price target is at the lower end of this range given the comparison with transaction valuations. In our view the key value drivers will be successful pilot plant lithium carbonate production and the completion of a robust PFS.

We have updated our valuation for Mustang, with this resulting in a slightly lower base case 12-month price target of $85 million, or $0.16/share, a 225% premium to the current price. 80% of this is based on a risked DCF valuation for a hypothetical operation.

We have a base case valuation range of A$0.16 to A$0.39/share for Australian Potash, with our preferred value being the midpoint of A$0.28/share. The Company’s Lake Wells Project, which has ready access to transport infrastructure including rail and ports, has returned a very robust Scoping Study for a 20-year operation, with Australian Potash now moving directly into a BFS, due for completion in early 2018 – the Company is looking to first production in late 2020.

We have completed a valuation for Sayona, with this resulting in a base case Company valuation of A$164 million, or A$0.087/share, diluted for a conceptual funding model for Authier. Results of the February PFS have highlighted the potential of Authier as a low cost, robust hard-rock lithium project, which returned a pre-tax NPV of C$140 million and an IRR of 39%.