LTR 7.10% $1.51 liontown resources limited

Ann: Chairmans Address and AGM Presentation, page-21

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    The room was definitely jam packed; a bit stuffy (& warm) with the crowd - it sure was sunny out here in Perth. The AGM kicked off going through the resolutions that were advised to the market a month ago.

    Off the script; a couple of notes while going through the resolutions:

    1. TG commented there were a few suggested that he should retire however; firm on his ground - he said,"I am not retiring.'

    2. On the matter of options issued to JM was justifiable given the work and responsibilities - it is also necessary to ensure it attracts the right people for the job.

    3. Perhaps no significant - Representative from ASA (Australian Shareholder Association) was in attendance representing 13 shareholders questioned the VWAP of the performance rights (?).

    4. As per TG; In 2 weeks' time -LTR will very likely join ASX200.

    TG then started off with the script as per his Chairman's Address which you will find in this announcement.

    1. As we all know; LTR signed the Native Title Agreement last week and stressed this was a very important milestone as it allows them to advance the project - without it; LTR would likely not be able to progress/or will experience delay of the KV project.

    2. ESG report will be out shortly.

    3. MI6 shares that most shareholders were eligible for works out to be around 6 cents dividend/cap return as at 60c?

    4. He thanked DR for the monumental work he has done before heading off officially today to fully commit to MI6; TG knew DR for 30+ years' - he was very glad and proud of his work and effort over the years since his appointment back in 2010 (?). DR was able to drive the team, get the job done though tough time - and as we all know; discovered the potential of KV. TG joked he couldn't carry on as he may cry if he said any more.

    5. TG discussed TO's appointment and joked that if only he had joined month earlier; he would've been a lot richer. biggrin.png

    6. TG also brought up the appointment of Jennifer Morris; and was glad she agreed to join LTR and her appointment will be instrumental to the Company's growth - TG invited JM to address the shareholders; she came up with a script prepared but decided not to read off it - she thanked TG and the management for the support and the work they've done together to date.

    7. Not many people knew but; Adam Smith; COO and Steve Chadwick was doing a lot of work behind the DFS and getting it to where it need to be of course with the help of the team.

    8. Finally; TG thanked the shareholders both new and old for their support especially the ones that supported the last $52m cap raise - the fund was needed to terminate the RMS's royalty and part of it was used to pay deposit on long lead items/equipment.

    TO later took over from TG to address the shareholders; a couple of points from TO:

    1. LTR will look to do a bit more exploration work on KV; particularly to the North (where the higher grade area are) perhaps to increase reserve or expand the resource first half of 2022 - probably before FEED.

    2. TO noted the $4.2B NPV of the DFS is After-tax; as many companies out there used Before-Tax; depending on jurisdiction; in Australia - Corporate tax is 30% (this is the franking credit that forms part of a fully franked dividend that we all know and love in Australia).

    3. TO raised a small transparent container with a yellow lid; bout the size of a cuppa with his right hand and said,"This is a 6.2% spodumene concentrate". it is a high grade product with no impurities - this is what they will be producing for the market/customers. the Tier 1 offtakers/potential partners would like to see this being produced on a larger scale i.e. pilot plant and which they have done (?).

    4. Sustainability Report out shortly; did TO said tomorrow(?)

    5. Downstream PFS study to commence shortly.

    6. On the funding of the KV project; Domestic and International bank/financier very interested in offering loan; they had received "interest-free" loan offers (probably for the construction period?) this wasn't the case 5 years ago. Equity funding currently looks attractive - but funding will likely be mixed; note what was mentioned in relation to debt perhaps also customer funding it.

    7. On the matter of supply and demand; many said the deficit is now occurring. but they still believe it is 2024; quoted Roskill as a reliable research house as they mainly focus on battery materials. TO said the believe the price use in their DFS for spod is reasonable as they are in constantly in contact with their potential customers when working on the terms of the offtakes.

    As per Roskill; the world need another 9 KV in addition to the current KV and other mines currently expected to come online in 2029. what better way to incentivise the market to bring on more supply? Answer: Higher Spod price.

    Recent: Analyst working on IGO's - the price used was $1,100/T for spod. Other analyst's price suggestion are pretty low - given they focuses on so many materials so are very always not up to speed in terms of pricing.

    During Q&A; someone brought up with the advancement of technology and what are the issue of another material replacing Lithium in batteries; The short answer from TO: Not going to happen anytime soon. The long answer: Lithium is the lightest metal known and very conductive. Lithium currently only represent about 8% of the cost in a battery. if anything that's going to get replaced first in a battery - it will be Nickel and Cobalt. The next iteration of batteries to replace Li-ION batteries (Lithium Salt) will be Solid State Batteries (Lithium Metal).

    There's more to this in the AGM but I'll leave it up to this point for now. Anyone who had attended please filled in - i understood there were a couple of shareholders were in detailed talk with the BOD after the AGM - hopefully someone will fill the gap of these discussion.

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