Splitting of Lac.

We probably all think about what happens during and after a split of Lac into "Lac US" and "Lac Int." My offer is of course only my best thoughts and what I have acted on. I have my entire position intact with a cut of 17, and have bought additional here on the news, and am waiting a bit to buy the last one. I only buy under 30 as I have far too many Lac shares from the perspective of a good risk profile, so will also have to sell a little during 2023.

A Due Diligence will be carried out for both new companies to value all parts of the companies. It should preferably show the company's earning capacity and goodwill. The SP I convert to are of course estimates.

Lac Int:

Profitability must be calculated based on a production of 20,000 tons in 2023, and 10 tons in 2024, I round down to 25,000 tons in the calculation and they should give an SP between 20 and 25. In addition to that, there will be goodwill of approx. 5.

The other value from Arena and Mill. are difficult to appreciate, but a goodwill of 7 is not unrealistic. We have a debt of approx. 245 million and cash of approx. 390 million This has to be divided but let's say 0 as a lot of money is spent on division and a year goes by. Total my bid is USD 30.

Lac US:

Here the production is 0 tonnes, but the potential is really big. Therefore, the following must be recognized in a Goodwill where an approval is fully in place.

- the self-ownership of rights

- all the work and investments made throughout the year

- there is a good chance for investment with public funds

- there is at least 100,000 tonnes of production in the pipeline.

An SP between 100 and 130 is realistic over 3 years, but my suggestion for an assessment here and now would be SP 50.

Conclusion: We will get a share of approx. 40% for Lac int., and 60% for Lac US.

Based on those figures, a 50/50 split is therefore not unlikely, as the potential is much greater in Lac US, but the risk is also greater and the waiting time longer. Remember the most important thing is that the overall potential is really big. When analysts say 40%, it is short-term, and they forget a bit that we are in a commodity mega trend.