Ann: Investor Presentation, page-126

How was the fundamental analysis on the Li sector? Still think they are over priced or over valued which you like to tag stocks with your FA when they start running away from you?

Absolutely overvalued based on risk metrics and yes I never jump on a run away train when I don't have a value basis to get me comfortable for the ride. The lithium stocks are a bubble created by lack of opportunity in the rest of the market, the idea that if we all get on the same train then the train can go to anywhere we take it, but worst of all its just an incredible con job perpetrated on global equity investors by a cartel of downstream LCE producers in China and elsewhere who are using starry eyed speculators to subsidies the risk of funding the raw commodity side of there business, not unlike the magnetite start ups that came to WA during the brief spike in iron ore prices in 2010/11. Spodumene prices tied through opaque off take agreements to the price of LCE... lol. As the market for batteries expands the volume of LCE sold by the cartels will rise but the price of LCE will fall as battery prices fall. It happens with all new and emerging technologies. The price falls as the uptake increases. The cartels won't lose as they can off set the falling revenue from falling battery prices against the rising volume of sales of LCE but the raw commodity suppliers of spodumene (the miners) will be hit by the double whammy of falling margins (since their prices are tied to the price of LCE) and increasing competition on the supply side as more mines and brine operations open.

Was never for me, to difficult to value. Ridiculous 30 year mine lives (DFS) funded and built on a short term supply spike in pricing. Top is in, the rest is just pain like the junior iron ore miners. One or two miners will survive, the African developers are history, the small Australian developers aren't worth looking at and the big Australian developer will end up disappointing. Way overvalued. Esh