Lithium Previewing the JunQ results

Research evidence excerpt

Lithium Previewing the JunQ results

Valuation Method and Risk Statement

We point out to investors the potential risks inherent in the mining sector including, but not

limited to, the volatile nature of commodity prices and currencies, which may differ materially

from expectations. Furthermore the sector is exposed to political, financial and operational

risks, each of which has the potential to significantly impact company/industry performance.

Elevra Lithium:

Our price target is based on 1x DCF using a 10% WACC and a US$1,400/t long-term

spodumene SC6 CFR China price. Investment risk inherent in the resource sector includes, but

is not limited to, movement of commodity price and currency which may differ materially

from the assumptions used in this report. Furthermore, the sector is subject to political,

financial and operational risks, each of which has the potential to significantly impact industry

performance.

Our valuation is subject to several operational, financial, and external risks that could

materially influence projected cash flows, earnings, and overall investment returns. These

include commodity price fluctuations, operating performance, cost pressures, project

execution, and regulatory developments.

Company-specific Risks: Risks around our production forecast includes the NAL expansion

and timing of the Moblan development project. We also note that Canada has typically been

a favourable mining jurisdiction.

Commodity and Macro Risks: Valuations in the mining sector are inherently sensitive to

underlying commodity prices, exchange rate movements, and global macroeconomic

conditions. Broader factors such as inflation, interest rates, and investor sentiment toward

cyclical sectors may also drive changes to our valuations and forecasted returns.