We believe PMT’s Corvette project is world class. A resource of 109mt @ 1.42% Li2O has already been defined and recent drilling success at the CV5 and CV13 pegmatites is expected to lift the global resource at Corvette when the new estimate is released in early August. Our base case development plan for Corvette assumes a combination of a 5.0mtpa open pit and 1.2mtpa underground, which delivers an annual spodumene production rate of 1.0mtpa. The capital cost to deliver the project is estimated at C$1.0b, and we expect first production to occur in FY30. PMT’s share price has come under significant pressure over the past month, falling 43%. The cuts to our shorter-term spodumene price forecasts have had no impact on our project valuation for Corvette. However, the weaker share price increases dilution from our equity portion of our funding assumptions for the project. The increased dilution drives 24% and 23% cuts to our ASX and TSX price targets to A$1.30 and C$12.00, respectively.
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