We have updated our valuation for Hexagon, taking into account the MinRes earn-in deal. This results in a base case risked after tax Company valuation of A$271 million or A$0.93/share. Dependent upon a future decision to mine, the entry of MinRes significantly de-risks the Project for Hexagon, with no need for the Company to source project financing, and also raises the possibility of significant cash flows

We have increased our base case, risked target price per share from A$0.41 to A$0.51. This is due to our increase of the risk factor from 60 to 65% given recent activities, and an increase in our forecast vanadium prices.

Our base case is the 75Ktpa start, expanding to 150Ktpa, giving a Net Present Value at a 10% discount rate of A$1.00/sh, rising to A$1.61/sh if the project is expanded to 300Ktpa. At a share price of A$1.00/sh, Kalium Lakes would be trading on a Price Earnings Ratio of 9.6x in the first full year of production at the 150Ktpa rate, which is still a low PER given the expansion potential.

IIR has a 12-month price target of A$1.50 per share based on our underlying earnings assumptions and DCF valuation. The Company has a proven product and business model. TNY offers a strong selling proposition for brands operating in the infant space. Its users are millennial parents with modern and connected families and who have a high level of trust in the platform.

We have an indicative valuation range of A$0.018 to A$0.058/share, with a preferred midpoint value of A$0.038/share. The current global resources of 28.2Mt @ 4.34g/t are relatively high grade when compared to peers.