Ann: Ceasing to be a substantial holder from MUFG, page-39

Strongly disagree with you as usual and here is why.

• By waiting until the DFS was complete shows the market that LPI/MSB is controlling the offtake/investment segment of the project's development, not the market.  It shows that LPI/MSB is very confident about this project and there is no need to 'fast-track anything'.  It might seem a little arrogant to some, but it shows the market that LPI/MSB is coming from a position of strength regarding this project.
• The DFS NPV is nearly US$250 million higher that the PEA NPV.  In terms of potential investors, we would have been cutting ourselves off at the knees negotiating with the lower NPV and US$250 million is NOT a small amount of money.
• The decision by the consultant engineers to add a significant process step (the salt removal plant), positions the LPI/MSB project where we will probably have the highest quality lithium feedstock being fed into the carbonate plant of any lithium project on the planet.  OK it knocks up the CAPEX and OPEX but it should give potential offtakers a greater degree of comfort regarding the quality of the BG LCE that will be produced.
• The forecast lithium oversupply has been known for years and that is another reason why LPI/MSB has been in no rush to 'fast-track' this project.  Timing is everything and by the time Maricunga starts producing BG LCE in early 2023, the EV revolution and demand for BG LCE should be much stronger and have a wider global footing.
• LPI/MSB has been in delicate negotiations with key Chilean stakeholders (the Government and Codelco) about their future involvement on the salar.  Being the first-mover at Maricunga and about five years ahead of Codelco and SQM, LPI/MSB holds most of the better cards at the table, but the last thing we need to do is overplay that hand.  We are operating in a foreign country and we need to respect its business culture and our relationship with those stakeholders.

Patience required.