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• Size Exceeds our Expectations: Lithium One released a NI 43-101 technical report on its signature property, Sal de Vida, in northwest Argentina. The high-grade lithium deposit averaged 695 mg/L lithium and 7,590 mg/L potassium, both of which are in line with our expectations. At 5.4 million tonnes lithium carbonate equivalent (LCE), and 21.3 million tonnes potash equivalent, the results show a tremendous resource that exceeded our expectations of 3.5 million tonnes LCE and 14 million tonnes potassium chloride equivalent. Like all of the salar projects we have under coverage, the tonnage of the inferred resource is significant enough for well over 30 years of production.
• Increased Valuation: We have increased our expected annual production rate to 20,000 tonnes of lithium carbonate from 15,000 tonnes. Additionally, we have increased capital costs from $100M to $150M. Note, we expect the consortium that includes KORES and LG Chem will provide 30% of the capital expenses based on their 30% equity stake in the company. We reiterate our Speculative Buy recommendation and raise our target price to $2.45.

Jonathan Lee, MBA
Battery Technologies and Materials Analyst