Page 1 of 27
-2146826246
Lithiu
m P
rodu
cer
TAW.asxAccumulate
Share Price - TAW
Valuation - TAW $0.31
Price Target (12 month) - TAW $0.39
Brief Business Description:
Hartleys Brief Investment Conclusion
Chairman & MD
Major Shareholders post merger
Burwill (7.2%)
Weier / Jiangte Special Electric Motor Co. Ltd (6.4%)
Tribecca (6.0%)
Company Address
Issued Capital pre-merger - TAW 578.1m
Issued Capital post merger - TAW 1186.8m
- fully diluted
Market Cap post merger
- fully diluted
Cash (31 Dec 18e) post merger A$24.4m
Debt (31 Dec 18e) post merger A$33.1m
EV post merger
EV/Resource Spod.
EV/Reserve Spod.
Prelim. (A$m) CY18e CY19e CY20e
Prod (Li Spod. eq) 0.095 0.266 0.335
Op Cash Flw -11.4 128.9 123.9
Norm NPAT -28.3 82.3 89.0
CF/Share (cps) -2.4 6.9 7.4
EPS (cps) -3.2 9.2 9.7
P/E -11.0 3.8 3.5
Mt Li2O Spod.
Resources (Li2O) 26.5 0.96% 4.2
Reserve (Li2O) 11.3 1.01% 1.9
Trent Barnett
Head of Research
Ph: +61 8 9268 3052
1214.5m
A$341.2m
A$349.2m
A$350.0m
A$82.5/t
A$184.0/t
Osborne Park, WA, 6017
In merger with SGX listed partner, AMAL. Good
quality and quantities of spodumene. Short mine life
but exploration potential to extend.
Mark Turner (Non-exec Chair.)
9 Oct 2018
$0.288
Spodumene producer in WA
Mark Calderwood (MD)
Level 3, 20 Parkland Rd,
Decent sized lithium (spodumene) producer Tawana Resources NL (TAW.asx) is a lithium producer in WA. Production is
200-300ktpa (TAW share ~50%) of high quality spodumene, although mine
life is relatively short (~5-6yrs @2.2Mtpa). The Company is merging with its
partner, Alliance Mineral Assets Ltd (AMS.sgx), our model and this research
report assumes the merger completes (1.1 AMAL per TAW). The de-listing
of TAW and ASX listing of AMAL is expected in Nov, but this is conditional.
Costs to be reduced by expansion, improved recoveries The Company is undertaking a study to add a fines circuit and significantly
increase total throughput. Currently, the preferred option is to modify the
existing DMS circuit from a 2-stream circuit processing a 1-10mm feed range
to a 3-stream circuit. It is proposed that +2mm feed would be processed
through the existing DMS plant streams and the ‘Fines’ stream would treat an
additional 20% of feed in the 2mm and 0.5mm size range. The plant
throughput rate with the addition of the fines stream is expected to increase
from ~200tph to 300tph plus increase the total DMS recovery rates, providing
a significant concentrate production increase. The higher throughput and
recoveries should reduce cash costs, and we assume ~US$425/t in CY20
(from US$575/t in July) using 0.77 USD/AUD. The capital cost estimate for
the fines circuit is expected to be significantly less than a second DMS plant.
We model A$20m in our valuation.
Tight balance sheet As disclosed in the Scheme Document, the Mergeco had a negative net
current asset position at June. Given the high strip ratio and commissioning,
we estimate minimal free-cash and a tight balance sheet into December. The
Mergeco has about $19m of pre-payments. However, the Company recently
announced two $20m loans with Tribecca, plus as production ramps up, the
free cash flow should be meaningful and able to finance the 1H capex
requirements to increase throughput. The fixed price contract (US$880/t 6%)
in CY19 reduces risk too.
Exploration ground to the north of mine The merged group will control the exploration ground immediately
surrounding the operation and most of the ground to the North. Ideally, further
exploration success will be concentrated in these areas.
Cowan exploration ground to the south of mine Cowan (COW.asx) is a to-be listed lithium explorer spun out of TAW as part
of the merger with AMAL. COW holds prospective ground to the south of the
mine. TAW has a 15% interest in the share capital of Cowan Lithium and,
subject to ASX waiver (if required), has the right to maintain its proportionate
interest in the future. Logically, any discoveries would be processed at Bald
Hill on yet to be determined commercial terms.
Initiate with Accumulate We initiate with a Accumulate. On our estimates, Mergeco is on EV/EBITDA
CY19 of 2.9x. We have a base NPV of 31cps, spot 56cps. Exploration
success that meaningfully extended mine life could have a dramatic increase
in valuation. Regionally, prospectivity appears good given Mt Marion & Mt
Cattlin are nearby and LTR.asx recently had some good intercepts at its
Buldania exploration project. Press (28 Sep) suggested GXY.asx is s/holder.
Hartleys Limited ABN 33 104 195 057 (AFSL 230052) 141 St Georges Terrace, Perth, Western Australia, 6000
Hartleys does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the
firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single
factor in making their investment decision. Further information concerning Hartleys’ regulatory disclosures can be found on Hartleys
website www.hartleys.com.au
0.00
0.10
0.20
0.30
0.40
0.50
0.60
.
5.
10.
15.
20.
25.
30.
Oct-18Jun-18Feb-18Oct-17
Volume - RHS
TAW Shareprice - LHS
Sector (S&P/ASX SMALL RESOURCES) - LHS
A$ M
Tawana Resources NL
Source: IRESS
TAWANA RESOURCES NL (TAW)
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 2 of 27
Tawana Res. NL Share Price
TAW $0.2875 Accumulate
Key Market Information Directors - post merger Company Information
Share Price (TAW) A$0.2875 Mark Turner (Non-exec Chair.) Level 3, 20 Parkland Rd,
Share Price (AMS terms) A$0.26 Mark Calderwood (MD)
Market Capitalisation - ordinary post merger A$341m Rob Vassie (Non-exec) Osborne Park, WA, 6017
Net debt post merger A$9m Vicki Xie (Non-exec, Weier nominee) Ph +61 8 9489 2600
Market Capitalisation - fully diluted post merger A$349m Arnold Chan Ming Fai (Non-exec, Burwell nominee)
EV post merger A$358m Joshua Ong (Non-exec) https://tawana.com.au/
Issued Capital post merger (AMAL basis) 1305.5m Geoffrey McNamara (Non-exec) http://www.alliancemineralassets.com.au
Issued Capital post merger (TAW basis) 1186.8m
Issued capital TAW pre-merger 578.1m Top Shareholders post merger Ord
Options on issue post merger (AMAL basis) 30.5 Burwill 94.0 7.2%
Issued Capital (diluted for options) post merger - AMAL 1336.0m Weier / Jiangte Special Electric Motor Co. Ltd 83.6 6.4%
Issued Capital (diluted inc. options and new capital) post merger - AMAL 1336.0m 1 Tribecca 78.3 6.0%
12month price target - TAW basis, post merger $0.39 2
3 Reserves & Resources Mt Li % Ta2O5
P&L Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21 4 Bald Hill M+I 14.4 1.02% 168
5 Bald Hill Inf 12.1 0.90% 123
Net Revenue A$m 135.2 307.1 313.1 266.2 6 Bald Hill Total 26.5 0.96% 149
Total Costs ex hedge A$m -109.8 -188.5 -186.5 -179.3 7
EBITDA A$m 4.4 120.3 126.6 86.9 8 Bald Hill Reserve 11.3 1.01% 160
- margin 3% 39% 40% 33% 9
Depreciation/Amort A$m -30.8 -34.1 -35.8 -36.4 Global Total 26.5 0.96% 149
EBIT A$m -26.5 86.3 90.7 50.5 10 Global Reserve 11.3 1.01% 160
Net Interest A$m -1.8 -3.9 0.2 1.4 Production Summary Unit Dec 18 Dec 19 Dec 20 Dec 21
Pre-Tax Profit A$m -28.3 82.3 90.9 51.9
Tax Expense A$m 0.0 0.0 -2.0 -15.6 Processed Mill Throughput Mt 0.98 1.93 2.20 2.20
Normalised NPAT A$m -28.3 82.3 89.0 36.4 Mined grade Li % 0.91% 1.10% 1.10% 1.03%
Abnormal Items A$m 0.0 0.0 0.0 0.0 Produced Spodumene - Technical Mt 0.000 0.000 0.000 0.000
Reported Profit A$m -28.3 82.3 89.0 36.4 Produced Spodumene - Battery Mt 0.088 0.243 0.303 0.282
Minority A$m 0.0 0.0 0.0 0.0 Produced Tantalite Mlb pa 0.130 0.331 0.378 0.378
Profit Attrib A$m -28.3 82.3 89.0 36.4 Produced Spodumene - Battery Eq Mt 0.095 0.266 0.335 0.317
Balance Sheet Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21 LCE equiv (0.135x Spod) ktpa 12.9 35.9 45.2 42.7
Cash A$m 24.4 128.2 244.1 309.2 Mine Life yr 6 5 4 3
Other Current Assets A$m 10.4 23.8 24.1 21.3 Assumed Mining Inventory Mt 11.7 9.9 7.7 5.5
Total Current Assets A$m 34.8 152.0 268.2 330.5 Assumed Mining Inventory - Li grade % 1.01% 1.00% 0.98% 0.94%
Property, Plant & Equip. A$m 197.3 186.3 156.4 126.0 Assumed Mining Inventory - Tant grade ppm 130 130 130 130
Exploration A$m 79.2 81.2 83.2 85.2 Capex -69.5 -23.0 -6.0 -6.0
Investments/other A$m 57.7 57.7 57.7 57.7 Costs Unit Dec 18 Dec 19 Dec 20 Dec 21
Tot Non-Curr. Assets A$m 334.2 325.2 297.3 268.9 Cost per milled tonne $A/t 130.1 87.3 75.3 72.9
Total Assets A$m 369.0 477.2 565.5 599.5 EBITDA / tonne milled ore $A/t 4.5 62.5 57.5 39.5
Total cost per milled tonne 112 98 85 81
Short Term Borrowings A$m 0.2 0.2 0.2 0.2 Total Cash Costs $A/t Spod. Batt. eq1,152 710 558 566
Other A$m 36.7 62.6 61.9 59.5 $US/t Spod. Batt. eq856 536 427 441
Total Curr. Liabilities A$m 36.9 62.7 62.1 59.7 C1: Operating Cash Cost = (a) $A/t Spod. Batt. eq1,338 633 495 507
Long Term Borrowings A$m 33.0 33.0 33.0 33.0 (a) + Royalty = (b) $A/t Spod. Batt. eq1,403 686 538 544
Other A$m 6.4 6.4 6.4 6.4 C2: (a) + depreciation & amortisation = (c) $A/t Spod. Batt. eq1,661 761 602 622
Total Non-Curr. Liabil. A$m 39.3 39.3 39.3 39.3 (a) + actual cash for development = (d) $A/t Spod. Batt. eq2,084 727 519 532
Total Liabilities A$m 76.2 102.1 101.4 99.1 AISC: (c) + Royalty $A/t Spod. Batt. eq1,727 814 645 659
Net Assets A$m 292.8 375.1 464.1 500.4 (d) + Royalty $A/t Spod. Batt. eq2,149 780 562 569
Net Debt A$m 8.7 -95.1 -211.0 -276.1 Price Assumptions Unit Dec 18 Dec 19 Dec 20 Dec 21
AUDUSD US$/A$ 0.74 0.76 0.77 0.78
Cashflow Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21 Spodumene - Chemical (5.5%) US$/t 955 800 658 600
Operating Cashflow A$m -9.6 132.8 125.6 87.3 Tantalite US$/t 60 60 60 60
Income Tax Paid A$m 0.0 0.0 -2.0 -15.6 Hedging / fixed price Unit Dec 18 Dec 19 Dec 20 Dec 21
Interest & Other A$m -1.8 -3.9 0.2 1.4 Yes Yes No No
Operating Activities A$m -11.4 128.9 123.9 73.1 Sensitivity Analysis
Valuation FY21 NPAT
Property, Plant & Equip. A$m -69.5 -23.0 -6.0 -6.0 Base Case 0.28 89.0
Exploration and Devel. A$m -1.6 -2.0 -2.0 -2.0 Spot Prices 0.51 (80.9%) 153.1 (72.1%)
Other A$m 0.0 0.0 0.0 0.0 Spot USD/AUD 0.71, Chemical Spod $805/t,Tant. $90/lb.
Investment Activities A$m -71.1 -25.0 -8.0 -8.0 AUDUSD +/--10% 0.22 / 0.36 (-22.4% / 26.8%) 63.1 / 102.8 (-29.1% / 15.6%)
Spodumene - Technical +/--10% 0.28 / 0.28 (0.0% / 0.0%) 89.0 / 89.0 (0.0% / 0.0%)
Borrowings A$m 20.0 0.0 0.0 0.0 Spodumene - Chemical +/--10% 0.32 / 0.24 (13.5% / -13.7%) 106.3 / 63.8 (19.5% / -28.3%)
Equity or "tbc capital" A$m 36.5 0.0 0.0 0.0 Tantalite +/--10% 0.29 / 0.28 (2.6% / -2.6%) 90.3 / 87.6 (1.5% / -1.5%)
Dividends Paid A$m 0.0 0.0 0.0 0.0 Production +/--10% 0.35 / 0.22 (22.9% / -23.3%) 100.5 / 62.2 (13.0% / -30.1%)
Financing Activities A$m 56.5 0.0 0.0 0.0 Operating Costs +/--10% 0.24 / 0.32 (-15.2% / 15.0%) 73.9 / 95.7 (-16.9% / 7.6%)
Unpaid Capital - TAW terms, post merger
Net Cashflow A$m -26.0 103.9 115.9 65.1 Year Expires No. (m) $m Avg price % ord
31-Dec-18 0.0 0.0 0.00 0%
Shares - TAW basis Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21 31-Dec-19 0.0 0.0 0.00 0%
Ord. Shares - End - TAW m 1186.8 1186.8 1217.3 1217.3 31-Dec-20 27.7 3.4 0.12 2%
Ord. Shrs - W'ted - TAW m 1186.8 1186.8 1202.1 1217.3 31-Dec-21 0.0 0.0 0.00 0%
Dil Shares - W'ted - TAW m 1186.8 1186.8 1217.3 1247.8 31-Dec-22 0.0 0.0 0.00 0%
TOTAL 27.7 3.4 2%
Ratio Analysis Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21 Valuation - AMAL basis, post merger A$m $/shr
Cashflow Per Share A$ cps -1.0 10.9 10.3 6.0 100% Bald Hill (pre-tax NAV at disc. rate of 10%) 398 0.33
Cashflow Multiple x -27.3 2.4 2.5 4.3 Other Assets/Exploration 60 0.04
Earnings Per Share A$ cps -2.4 6.9 7.4 3.0 Hedging / offtakes -6 0.00
Price to Earnings Ratio x -11.0 3.8 3.5 8.7 COW.asx investment 2 0.00
Dividends Per Share AUD - - - - Corporate Overheads -38 -0.03
Dividend Yield % 0.0% 0.0% 0.0% 0.0% Net Cash (Debt) -9 -0.01
Net Debt / Net Debt + Equity% 3% -34% -83% -123% Tax (NPV future liability) -32 -0.02
Interest Cover X na 21.9 na na Options & Other Equity 3 0.00
Return on Equity % na 22% 19% 7% Total 377 0.28
- TAW Basis, post merger 377 0.31
Analyst: Trent Barnett
+61 8 9268 3052
"tbc capital" could be equity or debt. Our valuation is risk-adjusted for how this may be obtained.
Sources: IRESS, Company Information, Hartleys Research
9 October 2018
9 Oct 18
Model assumes merger with AMAL completes
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 3 of 27
BALD HILL Bald Hill was commissioned in the June quarter 2018. Nameplate throughput is
1.2Mtpa, but it is already achieving 1.5Mtpa, and with modest capex for the fines circuit
2.2Mtpa (85% of 300t/h) is achievable.
The mine was already on a tantalum mining lease, and hence permitting was very
quick. The DMS plant itself is a new build (~$42m, pre working capital), and was also
constructed quickly. Crushing is via a contractor which also reduced capex. The
metallurgy allows for a simple flowsheet, which reduced process complexity. As
explained in the Scheme Document, the processing facilities comprise a new contract
crushing operation producing a product less than 10 mm. This product is fed into a
new two stage DMS (cyclones) circuit using ferrosilicon (FeSi) to control density. It
also incorporates mica removal through upflow classification using reflux classifiers.
There is rolls crushing and recycle of the coarse DMS middlings. Two size fractions
are processed through the DMS plant, a -10 + 5 mm fraction and a -5 mm + 1 mm
fraction. The -1 fraction is deslimed, passed over spirals to remove tantalum and then
dewatered and stored for future processing. The second stage DMS overflow
(middlings) is also dewatered and stored for future processing.
The product is a high grade (6% Li2O) coarse grain (+1mm) and low mica and low
iron. The first shipment of spodumene concentrate in early May 2018 averaged 6.37%
Li2O and 0.5% Fe2O3and contained less than 0.4% mica, and the second shipment of
spodumene concentrate in late May 2018 also averaged +6% Li2O and less than 0.6%
Fe2O3.
The Company is recommissioning the existing 350ktpa tantalum in 2019. Most of the
tantalum ore and lithium fines is currently stockpiled, and will be processed once
commissioned. The Company is undertaking a study to add a fines circuit to
significantly increase throughput. The preferred option by the Company is to modify
the existing DMS circuit from a 2-stream circuit processing a 1-10mm feed range to a
3-stream circuit. It is proposed that +2mm feed would be processed through the
existing DMS plant streams and the ‘Fines’ stream would treat an additional 20% of
feed in the 2mm and 0.5mm size range. The plant throughput rate with the addition of
the fines stream is expected to increase from the current nominal 200tph to 300tph
with increased total DMS recovery rates, providing a significant concentrate
production increase.
Total mining and processing cash costs in July were approximately US$575/t or
AUD$785/t per tonne of spodumene. July and August processing reached 243,182
tonnes at 0.83% Li2O head grade. The strip ratio was 23:1 in the first few months of
operation, and is expected to remain high in the near term.
Royalties The Western Australian government royalty is 5.0%. There is a private royalty for
some tenements for 2.5% of the gross proceeds of sale of tantalum and tin and 5% of
all other finished processed materials (including lithium), but no current resource is
under these royalties.
Bald Hil l was
commissioned in the
June quarter 2018.
Nameplate throughput
is 1.2Mtpa, but i t is
already achieving
1.5Mtpa, and with
modest capex for the
f ines c ircuit i t could
be 2.2Mtpa by mid-
CY19
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 4 of 27
Fig. 1: Reserves and Resources
Source: TAW
Fig. 2: View from concentrator
Source: Hartleys Site Visit 2018
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 5 of 27
Fig. 3: Pit Design
Source: TAW
Fig. 4: Merger timetable (27 September 2018)
Source: TAW
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 6 of 27
Fig. 5: Site layout
Source: TAW
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 7 of 27
COWAN LITHIUM (COW.ASX) Cowan (COW.asx) is a to-be listed lithium explorer that has been spun out of TAW prior to the
merger with AMAL. The Company holds prospective ground around Bald Hill.
TAW will have ~9m shares in Cowan Lithium, and a 15% a “participation right” which, subject
to certain conditions, allows it to maintain its 15% Shareholding in the Company to maintain its
proportionate interest in the future. COW is currently in an IPO process.
In addition, for so long as TAW holds at least a 10% interest in the share capital of Cowan
Lithium, it has the right to appoint a nominee director to the board of Cowan Lithium.
Fig. 6: Cowan Lithium and Mergeco tenements
Source: TAW
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 8 of 27
INDUSTRY EXPOSURE TAW is a lithium producer, and hence exposed to the Electric Vehicle industry.
Demand for lithium expected to grow significantly. Forecasts depend largely on the
take up of lithium battery cars, for which industry is uncertain.
Fig. 7: Hartleys simple LCE demand forecasts
Source: Hartleys
Fig. 8: Hartleys un-risked supply potential
Source: Hartleys
200700
120017002200270032003700420047005200
LithiumGlobal Demand (all industries)
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 9 of 27
Fig. 9: Global EV sales momentum scenario….
Source: Hartleys, insideevs.com
Medium Term (2022) Longer Term (2025) Long Term (2035)
0
5
10
15
20
25
30
Dec
-09
Au
g-1
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Ap
r-1
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-11
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g-1
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r-1
3
Dec
-13
Au
g-1
4
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r-1
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Dec
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Au
g-1
6
Ap
r-1
7
Dec
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Au
g-1
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Ap
r-1
9
Dec
-19
Au
g-2
0
Ap
r-2
1
Dec
-21
Au
g-2
2
Ap
r-2
3
Dec
-23
Au
g-2
4
Ap
r-2
5
Global EV SalesAnnualised Millionsper month
0
1
2
3
4
5
6
7
8
9
10
Dec
-09
Jul-
10
Feb
-11
Sep
-11
Ap
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2
No
v-1
2
Jun
-13
Jan
-14
Au
g-1
4
Mar
-15
Oct
-15
May
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Dec
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Jul-
17
Feb
-18
Sep
-18
Ap
r-1
9
No
v-1
9
Jun
-20
Jan
-21
Au
g-2
1
Mar
-22
Oct
-22
May
-23
Dec
-23
Jul-
24
Feb
-25
Global EV SalesAnnualised Millionsper month
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Dec
-09
Jul-
10
Feb
-11
Sep
-11
Ap
r-1
2
No
v-1
2
Jun
-13
Jan
-14
Au
g-1
4
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-
17
Feb
-18
Sep
-18
Ap
r-1
9
No
v-1
9
Jun
-20
Jan
-21
Au
g-2
1
Mar
-22
Oct
-22
May
-23
Dec
-23
Jul-
24
Feb
-25
Global EV Market Share
0%
5%
10%
15%
20%
25%
30%
Dec
-09
Au
g-1
0
Ap
r-1
1
Dec
-11
Au
g-1
2
Ap
r-1
3
Dec
-13
Au
g-1
4
Ap
r-1
5
Dec
-15
Au
g-1
6
Ap
r-1
7
Dec
-17
Au
g-1
8
Ap
r-1
9
Dec
-19
Au
g-2
0
Ap
r-2
1
Dec
-21
Au
g-2
2
Ap
r-2
3
Dec
-23
Au
g-2
4
Ap
r-2
5
Global EV Market Share
150
200
250
300
350
400
450
500
550
Dec
-09
Jul-
10
Feb
-11
Sep
-11
Ap
r-1
2
No
v-1
2
Jun
-13
Jan
-14
Au
g-1
4
Mar
-15
Oct
-15
May
-16
Dec
-16
Jul-
17
Feb
-18
Sep
-18
Ap
r-1
9
No
v-1
9
Jun
-20
Jan
-21
Au
g-2
1
Mar
-22
Oct
-22
May
-23
Dec
-23
Jul-
24
Feb
-25
Global LCE SalesLCE annualised (Kt)
150
350
550
750
950
1150
1350
Dec
-09
Au
g-1
0
Ap
r-1
1
Dec
-11
Au
g-1
2
Ap
r-1
3
Dec
-13
Au
g-1
4
Ap
r-1
5
Dec
-15
Au
g-1
6
Ap
r-1
7
Dec
-17
Au
g-1
8
Ap
r-1
9
Dec
-19
Au
g-2
0
Ap
r-2
1
Dec
-21
Au
g-2
2
Ap
r-2
3
Dec
-23
Au
g-2
4
Ap
r-2
5
Global LCE SalesLCE annualised (Kt)
0%
20%
40%
60%
80%
100%
120%
Dec
-09
Jan
-11
Feb
-12
Mar
-13
Ap
r-1
4
May
-15
Jun
-16
Jul-
17
Au
g-1
8
Sep
-19
Oct
-20
No
v-2
1
Dec
-22
Jan
-24
Feb
-25
Mar
-26
Ap
r-2
7
May
-28
Jun
-29
Jul-
30
Au
g-3
1
Sep
-32
Oct
-33
No
v-3
4
Global EV Market Share
150
650
1150
1650
2150
2650
3150
3650
4150
4650
5150
Dec
-09
Jan
-11
Feb
-12
Mar
-13
Ap
r-1
4
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-15
Jun
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Au
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8
Sep
-19
Oct
-20
No
v-2
1
Dec
-22
Jan
-24
Feb
-25
Mar
-26
Ap
r-2
7
May
-28
Jun
-29
Jul-
30
Au
g-3
1
Sep
-32
Oct
-33
No
v-3
4
Global LCE SalesLCE annualised (Kt)
0
20
40
60
80
100
120
140
Dec
-09
Jan
-11
Feb
-12
Mar
-13
Ap
r-1
4
May
-15
Jun
-16
Jul-
17
Au
g-1
8
Sep
-19
Oct
-20
No
v-2
1
Dec
-22
Jan
-24
Feb
-25
Mar
-26
Ap
r-2
7
May
-28
Jun
-29
Jul-
30
Au
g-3
1
Sep
-32
Oct
-33
No
v-3
4
Dec
-35
Global EV SalesAnnualised Millionsper month
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 10 of 27
GEOGRAPHIC EXPOSURE Bald Hill is located in WA, near Kalgoorlie.
Fig. 10: Project is well located to Kalgoorlie and Esperence
Source: TAW
Fig. 11: Region is prospective
Source: LTR
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 11 of 27
PEERS AND COMPETITORS
Fig. 12: Hartleys un-risked supply potential
Source: Hartleys
Fig. 13: ASX Lithium Peer
Source: Hartleys, IRESS. *Market cap is quoted ordinary shares from IRESS. It does not dilute for options, escrow shares,
performance shares, convertible notes, recent placements etc. These can be meaningful adjustments that should be taken
into account.
Company Ticker Last Quot. Mkt CapStatus
ASX Listed
1. Mineral Resources Limited MIN 15.71 2,904 Producer (Spod.)
2. Pilbara Minerals Limited PLS 0.835 1,439 Producer (Spod.)
3. Orocobre Limited ORE 4.15 1,106 Producer (Brine)
4. Galaxy Resources Limited GXY 2.54 1,064 Producer (Spod.) & Developer (Brine)
5. Altura Mining Limited AJM 0.245 455 Producer (Spod.)
6. Global Geoscience Limited GSC 0.26 397 Developer (Unconv.)
7. Kidman Resources Limited KDR 0.965 387 Developer (Spod.)
8. Tawana Resources NL TAW 0.2875 341 Producer (Spod.)
9. Argosy Minerals Limited AGY 0.23 222 Producer (Brine)
10. AVZ Minerals Limited AVZ 0.09 181 Developer (Spod.)
11. Neometals Ltd NMT 0.255 141 Producer (Spod.)
12. Piedmont Lithium Ltd PLL 0.15 84 Developer (Spod.)
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 12 of 27
KEY SUPPLIERS & CUSTOMERS The contract mining is performed by SMS. Cape Crushing operates the crusher.
Primero operates the process plant. The product is shipped out of Esperence, and
truck via Qube logistics.
The lithium offtake is with Burwill Commodity Ltd (JV with Jiangte Special Electric
Motor Co.). The offtake is for >5.5% Li2O and fixed at US$880/t (6% Li2O) for CY18
and CY19.
The Tantalum is not yet under binding offtake. There is a non-binding offtake (25
January 2018) with HC Starck Group for minimum of 600,000 pounds of tantalum
concentrate (>25% Ta₂O₅) in aggregate from April 2018 to 31 December 2020 or all
of the standard grade tantalum concentrate produced at Bald Hill within the Period if
the delivery is less than 600,000 pounds.
Fig. 14: Offtake
Source: TAW
Fig. 15: Esperence Port
Source: TAW
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 13 of 27
MANAGEMENT, DIRECTORS AND
MAJOR SHAREHOLDERS
(POST MERGER)
Biographies from Company websites and releases
Mark Turner, Chairman
Mr Turner is a Mining Engineer with more than 30 years of experience in the resources
sector. He has been responsible for the start-up and operation of mines in Australia,
Africa and Asia. He was previously General Manager Operations of Resolute Mining
Ltd, one of Australia’s largest gold producers and Chief Operating Officer (“COO”) of
CGA Mining, before its takeover by B2 Gold for C$1.1 billion in 2010. He is currently
the Chief Operating Officer of RTG Mining Inc. Mr Turner holds a degree in Mining
Engineering from the University of New South Wales and is Fellow of the AUSIMM.
Mark Calderwood, Managing Director
Mr Calderwood is a Chartered Professional Member of the Australasian Institute of
Mining and Metallurgy, a Non-Executive Director of Amani Gold and Non-Executive
Chairman of Manas Resources Limited. Previously, Mr Calderwood spent more than
a decade with Mt Edon Gold Mines, before moving onto Border Gold, a junior gold
explorer which later became Moto Gold Mines. In 1995 he moved to Ghana to run gold
explorer Leo Shield Exploration NL’s Ghana office. Leo Shield ultimately created
Perseus Mining in 2003. Mr Calderwood was Managing Director of ASX-100 listed
gold producer Perseus Mining Limited, a West African Gold producer and explorer
from its inception in 2003 until January 2013. Mr Calderwood steered Perseus from
an exploration company to a +200,000oz per year producing gold company. Under Mr
Calderwood’s leadership Perseus discovered more than 6.8 million ounces of gold,
built the Edikan Gold Mine, Ghana, on time and on budget and started commercial
production in January 2012
Robert (Bob) Vassie, Non-exec
Mr Vassie is a Mining Engineer with 30 years’ international mining industry experience
and 18 years’ experience in a range of senior management roles with Rio Tinto. He is
currently the Managing Director & CEO of St Barbara Limited and has particular
experience in operations management, resource development strategy, mine
planning, feasibility studies, business improvement, corporate restructuring and
strategic procurement. Mr Vassie has been credited with engineering a strong
operational and strategic turnaround at St Barbara since joining there in 2014.
Economic Exposure of Board and key management Total
Total Options Shares Economic
# Exposure
Position millions rank
Directors
Mark Turner Non-Exec Chairman n/a 1,000,000
Mark Calderwood MD n/a 21,880,000
Rob Vassie Non-Exec Director n/a 1,000,000
Vicki Xie Non-exec, Weier / Jiangte Special Electric Motor Co. Ltd n/a n/a
Arnold Chan Ming Fai Non-exec, Burwell nominee n/a n/a
Joshua Ong Non-Exec Director n/a n/a
Geoffrey McNamara Non-Exec Director n/a n/a
Source: TAW / AMAL
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 14 of 27
Vicki Xie, Non-exec
Ms Wei (Vicki) Xie is an accountant with more than 16 years’ experience in Accounting
and Finance, as well as in fund raising, acquisition and private equity investment. Ms
Xie has held Chief Financial Officer, accounting and Company Secretary roles in both
China and Australia. Ms Xie holds a Bachelor of Accounting. Ms Xie is a representative
of German company Weier Antriebe und Energietechnik GmbH (Weier), which has an
equity funding agreement with Tawana.
Arnold Fai, Non-exec
Independent Non-Executive Director of Burwill Holdings Ltd & China Lotsynergy
Holdings, Former CEO of City Green Holdings Limited and Full Seas Technology
Group. 30 years investment banking and asset management experience
Joshua Ong, Non-exec
Independent Director of Alliance since 2014. More than 20 years experience in audit,
consultancy and commercial financial control, and accounting, including over 10 years
in international accounting firms and corporates.
Geoffrey McNamara, Non-exec
More than 23 years resources sector experience as geologist, project manager,
corporate financier and fund manager. Partner at Medea Capital Partners, Non-
Executive Chairman of Cora Gold Limited
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 15 of 27
MAJOR SHAREHOLDERS
Burwill’s shareholding will be diluted to a position where its holding will be
approximately 7.2%. Burwill is the trading house for the offtake that is in JV with
Jiangte Special Electric Motor Co.
Only two Tawana Shareholders will become substantial shareholders in AMAL as a
result of the Scheme: Weier Antriebe und Energietechnik Gmbh will hold
approximately 6.4% and Tribeca Investment Partners (who is also currently a
shareholder of AMAL) will hold approximately 6.0% (assuming no other acquisitions
are made).
Weier Antriebe und Energietechnik Gmbh Weier is a 100% owned subsidiary of lithium
industry specialist Jiangte Special Electric Motor Co. Ltd (JSMC) and Tribeca is an
Australian institution.
Fig. 16: Shareholders – post merger
Source: TAW/AMAL Scheme Document
OPTIONS, CONVERTIBLES AND UNPAID CAPITAL
The merger ratio is 1.10 AMAL for every 1 TAW. There will be ~30m options on issue
post merger.
Fig. 17: Share on issue
Source: Hartleys Research Estimates
Top Shareholders post merger Ord
Burwill 41.6 7.2%
Weier Antriebe und Energietechnik Gmbh 37.0 6.4%
Tribecca 34.7 6.0%
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 16 of 27
FINANCIALS
PRODUCTION / PROFIT & LOSS
Company guidance Company expects 60-70kt of spodumene in Jul-Dec 2018. Assuming the fines circuit
is constructed, preliminary Company estimates are that throughput can increase to
300t/h (which we assume is ~2.2Mtpa at 85% availability).
Hartleys Forecasts We assume modest loss in CY18, but strong profitability in CY19 and beyond. Our
model assumes the merger completes, and hence is on a 100% basis.
Fig. 18: Production and Profit and Loss
Source: Hartleys Research Estimates
P&L Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21
Net Revenue A$m 135.2 307.1 313.1 266.2
Total Costs ex hedge A$m -109.8 -188.5 -186.5 -179.3
EBITDA A$m 4.4 120.3 126.6 86.9
- margin 3% 39% 40% 33%
Depreciation/Amort A$m -30.8 -34.1 -35.8 -36.4
EBIT A$m -26.5 86.3 90.7 50.5
Net Interest A$m -1.8 -3.9 0.2 1.4
Pre-Tax Profit A$m -28.3 82.3 90.9 51.9
Tax Expense A$m 0.0 0.0 -2.0 -15.6
Normalised NPAT A$m -28.3 82.3 89.0 36.4
Abnormal Items A$m 0.0 0.0 0.0 0.0
Reported Profit A$m -28.3 82.3 89.0 36.4
Minority A$m 0.0 0.0 0.0 0.0
Profit Attrib A$m -28.3 82.3 89.0 36.4
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 17 of 27
BALANCE SHEET
Fig. 19: Balance Sheet
Continued over page
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 18 of 27
Continued from previous page
Source: TAW/AMAL Scheme Document
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 19 of 27
Fig. 20: Balance Sheet
Source: Hartleys Research Estimates
Gearing ratios
Fig. 21: Gearing Ratios
Source: Hartleys Research Estimates
Balance Sheet Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21
Cash A$m 24.4 128.2 244.1 309.2
Other Current Assets A$m 10.4 23.8 24.1 21.3
Total Current Assets A$m 34.8 152.0 268.2 330.5
Property, Plant & Equip. A$m 197.3 186.3 156.4 126.0
Exploration A$m 79.2 81.2 83.2 85.2
Investments/other A$m 57.7 57.7 57.7 57.7
Tot Non-Curr. Assets A$m 334.2 325.2 297.3 268.9
Total Assets A$m 369.0 477.2 565.5 599.5
Short Term Borrowings A$m 0.2 0.2 0.2 0.2
Other A$m 36.7 62.6 61.9 59.5
Total Curr. Liabilities A$m 36.9 62.7 62.1 59.7
Long Term Borrowings A$m 33.0 33.0 33.0 33.0
Other A$m 6.4 6.4 6.4 6.4
Total Non-Curr. Liabil. A$m 39.3 39.3 39.3 39.3
Total Liabilities A$m 76.2 102.1 101.4 99.1
Net Assets A$m 292.8 375.1 464.1 500.4
Net Debt A$m 8.7 -95.1 -211.0 -276.1
Shares - TAW basis Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21
Ord. Shares - End - TAW m 1186.8 1186.8 1217.3 1217.3
Ord. Shrs - W'ted - TAW m 1186.8 1186.8 1202.1 1217.3
Dil Shares - W'ted - TAW m 1186.8 1186.8 1217.3 1247.8
Ratio Analysis Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21
Cashflow Per Share A$ cps -1.0 10.9 10.3 6.0
Cashflow Multiple x -27.3 2.4 2.5 4.3
Earnings Per Share A$ cps -2.4 6.9 7.4 3.0
Price to Earnings Ratio x -11.0 3.8 3.5 8.7
Dividends Per Share AUD - - - -
Dividend Yield % 0.0% 0.0% 0.0% 0.0%
Net Debt / Net Debt + Equity% 3% -34% -83% -123%
Interest Cover X na 21.9 na na
Return on Equity % na 22% 19% 7%
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 20 of 27
Fixed Assets According to scheme documents, the Mergeco has meaningful PPE & mine properties
on the balance sheet. The Bald Hill DMS plant cost TAW/AMAL ~$42m.
Debt The JV has a $5m loan agreement with Red Coast Investment, repayable on 30 June
2020 and attracts interest at the rate of 11% per annum (payable quarterly in arrears)
until 31 Dec 2019 and then 13% until 30 Jun 2020. The Company may repay the debt
at any time before maturity without penalty.
The Company has arranged two $20m loans with Tribecca to repay the Red Coast
loan, the DMS expansion and to meet ASX listing requirements (Emphasis of Matter
Requirement). The interest rates are libor+13% on drawn funds.
AMAL has a $13m debt facility with Tribeca (fully drawn down). The loan facility will
mature 24 months from the date of drawdown; with interest will accrue at 11% per
annum for the 6 months following the first drawdown of the facility and 20% pa
thereafter.
Additionally, as at 30th June, AMAL had a lithium pre-payment of A$7.3m and TAW of
~A$11.7m from Burwill. The repayments are based on 15% of the value of each
shipment of lithium concentrate.
Hedging The Company has fixed price contracts for delivery of CY18 and CY19 production at
US$880/t (6% Li2O) for CY18 and CY19 for >5.5% Li2O concentrate.
CASH FLOW
Fig. 22: Cash Flow Statement
Source: Hartleys Research Estimates
Cashflow Unit 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21
Operating Cashflow A$m -9.6 132.8 125.6 87.3
Income Tax Paid A$m 0.0 0.0 -2.0 -15.6
Interest & Other A$m -1.8 -3.9 0.2 1.4
Operating Activities A$m -11.4 128.9 123.9 73.1
Property, Plant & Equip. A$m -69.5 -23.0 -6.0 -6.0
Exploration and Devel. A$m -1.6 -2.0 -2.0 -2.0
Other A$m 0.0 0.0 0.0 0.0
Investment Activities A$m -71.1 -25.0 -8.0 -8.0
Borrowings A$m 20.0 0.0 0.0 0.0
Equity or "tbc capital" A$m 36.5 0.0 0.0 0.0
Dividends Paid A$m 0.0 0.0 0.0 0.0
Financing Activities A$m 56.5 0.0 0.0 0.0
Net Cashflow A$m -26.0 103.9 115.9 65.1
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 21 of 27
Capex requirements Maintenance capex is estimated at ~$6m pa. We assume the capital required to
expand throughput to 2.2Mtpa plus the tantalum circuit restart is ~$20m.
Free cash flow On our estimate, TAW should generate strong free cash flow.
Dividends We do not assume dividends in the foreseeable future, although they are possible in
later CY19.
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 22 of 27
EQUITY ISSUANCE We assume no further equity issuance.
Fig. 23: Share on issue – AMAL basis
Source: TAW
SENSITIVITIES
FX exposure TAW is exposed to the USD/AUD (costs are in AUD, selling prices USD).
Interest Rate exposure TAW has high cost debt. Refinance on better terms would be positive.
Commodity price exposure TAW is exposed to the lithium price (predominantly spodumene, but indirectly the
lithium carbonate and lithium hydroxide prices). A secondary consideration is the
tantalite price.
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 23 of 27
VALUATION CONSIDERATIONS AND
PRICE TARGET METHODOLOGY
VALUATION We assume that the fines circuit is commissioned and increases throughput to
~2.2mtpa. We assume higher recoveries to 70-75% at that time. We assume capex
for the circuit is ~$20m.
Fig. 24: Key assumptions and risks for valuation Assumption Risk of not realising
assumption Risk to valuation if
assumption is incorrect
Comment
Merger completes
Moderate High We assume that the merger with AMAL completes, but we note there have been delays.
Mergeco is listed on the ASX
Moderate Moderate We assume that the mergeco is listed on the ASX. This is the intention of the Companies but
there have been delays
Throughput expanded to 2.2Mtpa
Low High We assume a fines circuit improves throughput and recoveries
Declining spodumene prices High High TAW is very sensitive to spodumene prices
Equity dilution
Low Moderate We assume no new equity
Mine life of 6 years, in excess of current reserve
High High We assume a mining inventory higher than the current reserve, which implies exploration
success
AUD appreciates High Upside / Downside We assume appreciating AUD. Which impacts our USD cost forecasts.
Exploration success Moderate High We attribute some value to exploration potential beyond the assumed mine life extension.
Conclusion We believe our TAW assumptions are realistic.
Source: Hartleys Research
Hartleys Limited Tawana Resource NL (TAW) 9 October 2018
Page 24 of 27
Fig. 25: Lithium Carbonate Price Assumptions
Source: Hartleys estimates
Fig. 26: AUD estimates
Source: Hartleys estimates
PRICE TARGET Our price target is based on blended scenarios.
0
5
10
15
20
25
30
Hartleys Assumption for Valuations LCUS$/t
0
200
400
600
800
1000
1200Hartleys Assumption for Valuations Spodumene 5.5%US$/t
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20Hartleys Assumption for Valuations AUDUSD
Price Target Methodology Weighting Spot 12 mth out
NPV base case 65% $0.31 $0.35
NPV at spot commodity and fx prices 15% $0.56 $0.62
NPV spodumene US$450/t, tantalite US$60/lb 10% $0.24 $0.27
EV/EBITDA of 4.0x 5% $0.37 $0.56
NPV base case at discount rate of 6.0% 5% $0.31 $0.35
Risk weighted composite $0.34
12 Months Price Target $0.39
Shareprice - Last $0.288
12 mth total return (% to 12mth target + dividend) 37%
Source: Hartleys Estimate
Page 25 of 27
RECOMMENDATION & RISKS
INVESTMENT THESIS & RECOMMENDATION TAW is a good sized spodumene producer. The product quality positions it well and
the fixed price offtake for CY18 and CY19 alleviate near term pricing risk. The key is
exploration success to meaningfully extend mine life, which could have a dramatic
increase in valuation. Regionally, prospectivity appears good given Mt Marion & Mt
Cattlin are nearby and LTR.asx recently had some good intercepts at its Buldania
exploration project. We note recent press commentary reports sources say that
GXY.asx is on the TAW register. We initiate with an Accumulate recommendation.
RISKS The key risks for TAW (like most mining companies) is earnings disappointments
given the industry is volatile and earnings can disappoint due to commodity prices,
cost overruns, project delays, environmental regulations, taxation/royalties changes,
cost inflation or lower production. Although some earnings disappointments can be
short term and only a timing issue, other disappointments can be materially value
destructive and can sometimes overhang stocks for a long period of time (for example
environmental mismanagement). Such disappointments can be very difficult to predict
and share price reactions can be severe and immediate upon disclosure by the
company. High financial leverage (if it exists at that time) would add to the problem.
Another key risk for miners is maintaining and extending mine life or making the
prudent decision to close a mine, given mines are depleted and many have reasonably
short lives and often with reducing economics.
SIMPLE S.W.O.T. TABLE Strengths In production
Fixed price sale for CY18 and CY19 High quality spodumene Tantalite credits
Weaknesses High cost Short mine life
Opportunities Expansion to 2.2Mtpa Exploration
Threats Mine life Commodity prices
Source: Hartleys Research
The key is explorat ion
success to
meaningfully extend
mine l i fe, which could
have a dramat ic
increase in valuat ion
Hartleys Limited Tawana Resources NL (TAW) 9 October 2018
Page 26 of 27
EV/EBITDA BANDS
Fig. 2: EV/EBITDA Base case
Source: Hartleys Estimates
Fig. 3: EV/EBITDA spot case
Source: Hartleys Estimates
.00
.20
.40
.60
.80
1.00
1.20
TAW Actual
Hartleys Target
8x EV/EBITDA
6x EV/EBITDA
4x EV/EBITDA
2x EV/EBITDA
1x EV/EBITDA
Shareprice
.00
.50
1.00
1.50
2.00
2.50
TAW Actual
8x EV/EBITDA
6x EV/EBITDA
4x EV/EBITDA
2x EV/EBITDA
1x EV/EBITDA
Shareprice
Hartleys Limited ATawana Resources NL (TAW) 9 October 2018
Hartleys Limited Tawana Resources NL (TAW) 9 October 2018
Page 27 of 27
HARTLEYS CORPORATE DIRECTORY Research Trent Barnett Head of Research +61 8 9268 3052
Mike Millikan Resources Analyst +61 8 9268 2805
John Macdonald Resources Analyst +61 8 9268 3020
Paul Howard Resources Analyst +61 8 9268 3045
Aiden Bradley Research Analyst +61 8 9268 2876
Oliver Stevens Research Analyst +61 8 9268 2879
Michael Scantlebury Junior Analyst +61 8 9268 2837
Janine Bell Research Assistant +61 8 9268 2831
Corporate Finance Dale Bryan Director & Head of
Corp Fin.
+61 8 9268 2829
Richard Simpson Director +61 8 9268 2824
Ben Crossing Director +61 8 9268 3047
Ben Wale Director +61 8 9268 3055
Stephen Kite Director +61 8 9268 3050
Scott Weir Director +61 8 9268 2821
Scott Stephens Associate Director +61 8 9268 2819
Rhys Simpson Associate Director +61 8 9268 2851
Michael Brown Executive +61 8 9268 2822
Registered Office
Level 6, 141 St Georges Tce Postal Address:
Perth WA 6000 GPO Box 2777
Australia Perth WA 6001
PH:+61 8 9268 2888 FX: +61 8 9268 2800
www.hartleys.com.au [email protected]
Note: personal email addresses of company employees are structured
in the following manner: [email protected]
Hartleys Recommendation Categories
Buy Share price appreciation anticipated.
Accumulate Share price appreciation anticipated but the risk/reward is
not as attractive as a “Buy”. Alternatively, for the share
price to rise it may be contingent on the outcome of an
uncertain or distant event. Analyst will often indicate a
price level at which it may become a “Buy”.
Neutral Take no action. Upside & downside risk/reward is evenly
balanced.
Reduce /
Take profits
It is anticipated to be unlikely that there will be gains over
the investment time horizon but there is a possibility of
some price weakness over that period.
Sell Significant price depreciation anticipated.
No Rating No recommendation.
Speculative
Buy
Share price could be volatile. While it is anticipated that,
on a risk/reward basis, an investment is attractive, there
is at least one identifiable risk that has a meaningful
possibility of occurring, which, if it did occur, could lead to
significant share price reduction. Consequently, the
investment is considered high risk.
Institutional Sales Carrick Ryan +61 8 9268 2864
Justin Stewart +61 8 9268 3062
Simon van den Berg +61 8 9268 2867
Digby Gilmour +61 8 9268 2814
Jayme Walsh +61 8 9268 2828
Veronika Tkacova +61 8 9268 3053
Wealth Management Nicola Bond +61 8 9268 2840
Bradley Booth +61 8 9268 2873
Adrian Brant +61 8 9268 3065
Nathan Bray +61 8 9268 2874
Sven Burrell +61 8 9268 2847
Simon Casey +61 8 9268 2875
Tony Chien +61 8 9268 2850
Tim Cottee +61 8 9268 3064
David Cross +61 8 9268 2860
Nicholas Draper +61 8 9268 2883
John Featherby +61 8 9268 2811
Ben Fleay +61 8 9268 2844
James Gatti +61 8 9268 3025
John Goodlad +61 8 9268 2890
Andrew Gribble +61 8 9268 2842
David Hainsworth +61 8 9268 3040
Murray Jacob +61 8 9268 2892
Gavin Lehmann +61 8 9268 2895
Shane Lehmann +61 8 9268 2897
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Scott Metcalf +61 8 9268 2807
David Michael +61 8 9268 2835
Jamie Moullin +61 8 9268 2856
Chris Munro +61 8 9268 2858
Michael Munro +61 8 9268 2820
Ian Parker +61 8 9268 2810
Matthew Parker +61 8 9268 2826
Charlie Ransom
(CEO)
+61 8 9268 2868
David Smyth +61 8 9268 2839
Greg Soudure +61 8 9268 2834
Sonya Soudure +61 8 9268 2865
Dirk Vanderstruyf +61 8 9268 2855
Samuel Williams +61 8 9268 3041
Disclaimer/Disclosure
The author of this publication, Hartleys Limited ABN 33 104 195 057 (“Hartleys”), its Directors and their Associates from time to time may hold
shares in the security/securities mentioned in this Research document and therefore may benefit from any increase in the price of those securities.
Hartleys and its Advisers may earn brokerage, fees, commissions, other benefits or advantages as a result of a transaction arising from any advice
mentioned in publications to clients.
This report was prepared solely by Hartleys Limited. ASX Limited ABN 98 009 642 691 and its related bodies corporate (“ASX”) did not prepare
any part of the report and has not contributed in any way to its content. The role of ASX in relation to the preparation of the research reports is
limited to funding their preparation, by Hartleys Limited, in accordance with the ASX Equity Research Scheme. ASX does not provide financial
product advice. The views expressed in this research report may not necessarily reflect the views of ASX. To the maximum extent permitted by
law, no representation, warranty or undertaking, express or implied, is made and no responsibility or liability is accepted by ASX as to the
adequacy, accuracy, completeness or reasonableness of the research reports. The analyst travelled to site at the expense of TAW, with all
associated costs being covered by TAW. Any financial product advice contained in this document is unsolicited general information only. Do not
act on this advice without first consulting your investment adviser to determine whether the advice is appropriate for your investment objectives,
financial situation and particular needs. Hartleys believes that any information or advice (including any financial product advice) contained in this
document is accurate when issued. Hartleys however, does not warrant its accuracy or reliability. Hartleys, its officers, agents and employees
exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by law.