Kidman Resources - Buy Opportunity

Recent sell-off of lithium stocks across the board has presented a buying opportunity of one of the best stocks to hold long term. The SQM deal to expand brine operations in Chile means that Mt Holland will be a higher margin profit earner for SQM and thus more emphasis will be devoted to get this into production as soon as possible. An update of the refinery status is expected later this week or early next.


Upcoming Price Catalysts
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Further assay result from Earl Grey 1H2018
Deposit size upgrade 1H 2018
Off-take deal announcement. Near Term
Define second deposit at Bounty area. 2H2018
Commence building of mine: December quarter 2018
ASX 200 Inclusion
Gold Asset Divestments

Highlights
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* JV with No 1 lithium producer $SQM
* Fully funded to mine production
* Deposit will likely double
* No offtake agreements signed as yet
* Clear takeover target

Research Notes
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Blue Ocean Equity price target at $2.50 short term and $4 long term.

JORC Deposit
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128Mt at 1.44% Li20 for 4.54Mt LCE

Corporate Snapshot
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Shares on issue: 350.14M
Options on issue: 47.45M
Cash (Sept 2017): AUD$6.23 million
Debt : AUD$6.3 millionn