Kurt Worden

Transcription

1 Closing Price (A$/Share) Million Shares BurnVoir Company Research 27 March 2018 Kalium Lakes Limited (KLL.ASX) is an ASX listed sulphate of potash developer. Its assets include the 100% owned Beyondie Sulphate of Potash Project (currently progressing through a Bankable Feasibility Study), and an 85% interest in the Carnegie Potash Project, a joint venture with BCI Minerals (BCI.ASX). Both assets are located in the East Pilbara region of Western Australia. Kurt Worden kew@burnvoir.com.au John Ciganek jpc@burnvoir.com.au This Research has been prepared and issued by BurnVoir Corporate Finance Limited ( BurnVoir ) and remains the property of BurnVoir. No material contained in this Research may be reproduced or distributed without prior written approval of BurnVoir, except as allowed by the Copyright Act. This Research is current at the date of publishing. For further information regarding this research, please contact BurnVoir. BurnVoir does or seeks to undertake business with companies covered in its research and therefore, Investors should consider this report as only a single factor in making their investment decisions. For other important disclosures, please refer to the disclosure section at the end of this document. Phased Production Strategy Further De-Risks Beyondie Kalium Lakes Limited (KLL.ASX, mkt cap A$68.8m) has indicated Beyondie will likely commence production at 75ktpa, with a subsequent expansion to 150ktpa. This presumably takes into account the views of market participants and financiers, while further mitigating potential technical risks. We have updated our model to reflects this strategy, and included higher recoveries and product pricing based on recent process plant optimisation study results. In rolling forward our valuation date 12 months, our revised A$0.92/sh valuation captures the construction financing, and we note the expansion to 150tkpa may be funded without the need to raise further equity. Higher recoveries could see a 12.5% increase in SOP output KLL has demonstrated improvements in purification plant recoveries from 80% to 90-98%. We have lifted our modelled plant recoveries to 90%, resulting in a rise in SOP output from 75ktpa to 84ktpa, and 150ktpa to 169ktpa. To achieve this 12.5% boost in production, we assume the plant capex will rise by $5m for each stage. Premium product pricing adds A$34m to project valuation KLL has achieved product specifications for a premium SOP product (51-52% K 2O, <0.5% Cl) which is likely to attract a pricing premium across its range. Low insoluble matter will also permit addition of a soluble product to the suite. Our base US$500/t SOP standard price remains unchanged, however our revised premia have lifted our weighted average SOP price from US$525/t to US$575/t SOP (A$700/t to A$737/t SOP, on higher AUDUSD). Approvals continue to progress as expected Native Title Mining Agreements are in place for the entire project, and KLL anticipates grant of its Mining Lease and additional tenure in Q2 CY2018. The EPA has determined that the Beyondie Project requires assessment but does not require public review. KLL anticipates both state and Federal approvals should be received in Q3 CY2018. Carnegie JV exploration delivers, Scoping Study due Q2 CY2018 Augur drilling results from the Carnegie Project have revealed brine grades comparable to the adjacent Lake Wells projects of Australian Potash Limited (APC.ASX) and Salt Lake Potash (SO4.ASX). A Scoping Study is due next quarter, which will put Carnegie on an even footing with these projects. EcoMag process demonstrated in WA EcoMag and Kalium Lakes have replicated laboratory results in the production of hydrated magnesium carbonate at EcoMag s demonstration plant in Karratha. Our valuation does not include the magnesium project. Producers market multiple valuations reveal future value upside Global fertiliser producers current trade at P/E multiples of 22.1x and EV/EBITDA multiples of 10.7x. In FY2021, KLL should have completed a full year of steady-state production at 84ktpa, and may start to be valued on a market-multiple basis, in contrast to trading at 7.3x (P/E) and 5.3x (EV/EBITDA) ratios (assuming current share price of A$0.405). Company Data ASX Code KLL.ASX Share Price (A$/sh) Number of shares (m) Market Capitalisation (A$m) 68.8 Free float (%) 66.0% 12-month high / low (A$/sh) 0.56 / 0.33 Average daily turnover ( 000 shares) 86.0 GICS Industry Group Materials Earnings Summary (June YE) 2018F 2019F 2020F 2021F Reported Profit ($M) 0.2 (1.4) (1.3) 17.5 EPS ( ) nm nm nm 0.06 P/E 1 (x) nm na na 7.3 CFPS ( ) (4.5) (6.5) (15.2) 4.8 P/CF 1 (x) na na na 8.5 EV/EBITDA 1 (x) na na (1) Based on fixed, current share price. na = not applicable; nm = not meaningful. KLL Share Price Performance (LTM) Daily Volume Traded On-Market Daily Close Price - Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Sum of Parts Valuation NPV Undiluted Diluted (as at 30 June 2019) A$M A$/sh A$/sh Beyondie Potash Project (100%) Beyondie HMC Project Carnegie Joint Venture (85%) Corporate (49.7) (0.18) (0.16) Tax Shield Debt (80.0) (0.29) (0.25) Cash Total Value of Common Equity Fully Diluted Shares (M) N/A BurnVoir is currently acting as Corporate Finance Adviser BurnVoir Corporate Finance Limited

2 Beyondie Project: recasting to a phased ktpa operation In line with KLL s guidance, we have updated our modelled Beyondie Project to start production as a 75ktpa nameplate operation, with a subsequent expansion to 150ktpa nameplate operation (Table 1). We now assume the 150ktpa expansion can be funded via a debt re-financing and from operating cashflow. Our production profile still assumes initial production in Q4 CY2019, now with a nine-month ramp to 75ktpa nameplate production. We then assume stable operations for 2 years, after which re-financing of the debt facility and operating cashflow fund the expansion to 150ktpa. We have also assumed that the expansion takes nine months to ramp up, achieving 150ktpa production rate from Q2 CY2024. Our capital and operating cost assumptions reflect those included in the October 2017 PFS, save for our assumption for an additional A$5 million spend on the purification plant at each phase (A$10 million total), factored to permit higher recoveries (discussed in the following section). Table 1: Impacts of Modelling Changes on Beyondie Potash Project Valuation Beyondie Potash Project Unit Last Report Phased Ops +Recovery Pricing & FX This Report Plant Recovery % SOP Production Profile ktpa SOP Base SOP Price US$/t SOP Average SOP Sale Price US$/t SOP Average SOP Sale Price A$/t SOP AUDUSD A$:US$ Pre-Production Capital A$M, real Expansion Capital A$M, real LOM - Operating Cost Ex-Works A$/t SOP Trucking A$/t SOP Port A$/t SOP Total Operating Cost (FOB) A$/t SOP Project NPV (10%, post-tax nominal) A$M Valuation Date - 30 Jun Jun Jun Jun Jun 2019 Source: BurnVoir estimates. Interpreting increased plant recoveries what are the impacts? For a targeted 150ktpa SOP output, an increase in purification plant recovery could lead to increased production, thereby reducing unit costs due to fixed components being allocated across an increased number of tonnes of SOP, and potentially also lowering some variable cost elements (e.g., better efficiency from consumables). Alternatively, for a nameplate (i.e., constrained by capacity) 150ktpa SOP output, higher recoveries would lower brine feedstock requirements to achieve nameplate production, leading to reduced upfront and sustaining capital requirements for brine production infrastructure (bore, trench and pipeline installation and pumping) and smaller evaporation pond areas (reduced civil works and lining). Reserve life would extend, while the operational footprint / environmental impact would reduce. In our modelling, we have assumed the plant is constrained, and lifting our purification plant recoveries from 80% to 90% will require an additional A$5 million during the initial construction, and a further A$5 million during the expansion to 150ktpa. These assumptions have been drawn from extrapolation of the capital estimates from 100ktpa / 200ktpa purification plant capital estimates in the October 2017 PFS. While the results from K-UTEC s laboratories in Germany and the Saskatchewan Resource Council s facilities in Canada reveal a range of recoveries of 90-98%, at this stage we have applied a recovery at the bottom end of this results range until final BFS estimates are published. Our overall SOP recovery including the evaporation ponds is 78%, up from 70% in our previous note. This change has increased the annualised production for phase 1 from 75ktpa to 84ktpa and phase 2 production from 150ktpa to 169ktpa (+12.5%). Spreading the four major fixed cost components (labour, village, laboratory, and environmental / approvals) across the additional tonnes has reduced our modelled life of mine operating cost from A$245/t to A$242/t (refer Table 1). BurnVoir Corporate Finance Limited 27 March

3 KLL is now targeting production of 3 SOP products: i. Standard Premium; ii. Granular Premium; and iii. Soluble Premium. Product specifications support a premium product range The BFS purification plant optimisation study also revealed that the SOP produced in both Germany and Canada meets product specifications that should attract a premium for all Beyondie products, based on the contained K2O and chloride (Cl) content. The results from both laboratories indicate that Beyondie SOP achieves 51-52% K2O content, consistent with Standard Premium products in the market, and above the 50% K2O market typical SOP content, upon which market pricing is benchmarked against. The <0.5% chloride impurity content is also below typical 1.5% thresholds. In addition, these product specifications together with the low amounts of insoluble material will permit KLL to add a soluble SOP product to its Beyondie SOP product suite. In its PFS, KLL indicated it would produce 50% standard product, and 50% granular product, with the latter attracting a 10% premium. Our previous model assumptions were in line with this guidance. KLL has now flagged its intention to produce three SOP products including: (i) Granular Premium; (ii) Standard Premium; and (iii) Soluble Premium. With the new product specifications meeting Standard Premium grade, we have now assumed a 10% premium to our US$500/t SOP base price across all products. In addition, we have applied a 5% premium to Granular Premium product and a 10% premium to Soluble Premium product reflecting current market pricing. In the absence of further guidance, we have assumed the SOP production is split equally across the three products (refer to Table 2). Table 2: Revised SOP Product Splits and Price Premiums SOP Products PFS Product Splits (%) Previous Premia (%) Standard 50% 0% Granular 50% 10% New Product Splits (%) Revised Premia (%) Standard Premium 33% 10% Granular Premium 33% 15% Soluble Premium 33% 20% Total 100% 100% The updated pricing assumptions lifts our modelled sales price from US$525/t SOP to US$575/t SOP. At our revised AUD:USD assumption (now 0.78, previously 0.75) the updated A$737/t average selling price represents a ~5% increase on our previous A$700/t SOP price. These changes have delivered a A$34m increase to the Beyondie Project valuation in our Sum of Parts valuation (refer to Table 1). Sum of Parts Valuation at 30 June 2019: captures project financing In Table 3 we present our previous report Sum of Parts valuation as at 30 June 2018, compared with our updated Sum of Parts Valuation twelve months on, at the end of construction. Aside from the operational and pricing adjustments we have made, the key difference reflects the impact of our construction financing assumptions (A$80m debt, A$55m equity). While the Sum of Parts valuation has increased from A$224.4m to A$289.3m, the fully diluted share valuation has fallen from A$1.18/sh to A$0.92/sh due to the higher number of shares on issue after capturing the constructing equity. Rolling our NPV forward to June 2019: The higher project NPV is offset by inclusion of debt. Construction equity is now captured (A$55m new equity raised, assumed at A$0.50/sh). Table 3: Sum of Parts Valuation pre-construction vs end-construction Sum of Parts Valuation Previous Report 1 This Report 2 NPV Undiluted Diluted NPV Undiluted Diluted A$M A$/sh A$/sh A$M A$/sh A$/sh Beyondie Potash Project Beyondie Magnesium Project Carnegie Joint Venture (KLL 85%) Corporate (44.2) (0.28) (0.23) (49.7) (0.18) (0.16) Tax Shield Debt (80.0) (0.29) (0.25) Cash Total Value of Common Equity Fully Diluted Shares (M) Source: BurnVoir estimates. Notes: 1 Valuation as at 30 June 2018 (pre-construction); 2 Valuation as at 30 June 2019 (endconstruction). BurnVoir Corporate Finance Limited 27 March

4 Table 4: Annual Cash Flow Summary Units FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27-40 Production Year Average Total CPI % 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% AUD:USD Exchange Rate USD per AUD Average K2SO4 Price US$/t, Real Average K2SO4 Price A$/t, Real Brine Pumped to Ponds GL/year K Grade mg/l - - 6,278 6,278 6,278 6,278 6,278 6,278 6,278 6,278 6,278 K2SO4 Grade Kg/m Contained K2SO4 kt Evaporation Pond Recovery % % 87.0% 87.0% 87.0% 87.0% 87.0% 87.0% 87.0% 87.0% Purification Plant Recovery % % 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% K2SO4 Produced kt ,385 Gross Revenue A$'000, Real ,901 62,200 62,200 62, , , , ,512 2,495,134 Royalties A$'000, Real - - (721) (1,667) (1,667) (1,667) (2,805) (3,334) (3,334) (3,230) (66,879) Net Revenue A$'000, Real ,180 60,532 60,532 60, , , , ,281 2,428,254 Ex Works A$'000, Real - - (11,288) (17,463) (17,463) (17,463) (28,758) (28,420) (28,420) (27,541) (589,931) Trucked to Depot A$'000, Real - - (1,715) (3,965) (3,965) (3,965) (6,670) (7,929) (7,929) (7,681) (159,039) Free on Board A$'000, Real - - (747) (1,727) (1,727) (1,727) (2,906) (3,454) (3,454) (3,346) (69,284) Total Operating Expenditure A$'000, Real - - (13,749) (23,154) (23,154) (23,154) (38,334) (39,803) (39,803) (38,569) (818,254) Ex Works A$/t, Real Trucked to Depot A$/t, Real Free on Board A$/t, Real Total Operating Expenditure A$/t, Real EBITDA A$'000, Nominal ,023 39,764 40,558 41,369 71,778 93,574 95, ,283 2,144,042 D&A A$'000, Nominal - - (5,109) (6,872) (6,949) (9,873) (12,454) (12,570) (12,693) (13,951) (346,942) EBIT A$'000, Nominal - - 7,915 32,891 33,610 31,496 59,324 81,004 82,751 95,332 1,797,100 Tax Attributable to Project A$'000, Nominal - - (2,430) (9,867) (10,083) (9,449) (17,797) (24,301) (24,825) (28,750) (558,757) Operating Results After Tax A$'000, Nominal - - 5,485 23,024 23,527 22,047 41,527 56,702 57,926 66,582 1,238,343 Add: Depreciation A$'000, Nominal - - 5,109 6,872 6,949 9,873 12,454 12,570 12,693 13, ,942 Less: Increase in Working Capital - - (2,268) (1,024) (66) (67) (4,169) (152) (155) Invested A$'000, Nominal Operating Cash Flow A$'000, Nominal - - 8,326 28,873 30,410 31,853 49,812 69,121 70,464 81,027 1,585,285 Construction Capital Expenditure Construction Capex A$'000, Real - 92,093 36, , ,661 Sustaining Capex A$'000, Real ,487 1,487 1,487 1,926 2,213 2,213 2,144 45,940 Rehabilitation Capex A$'000, Real ,250 20,000 Total Capital Expenditure A$'000, Real - 92,093 37,333 1,487 1, ,540 1,926 2,213 2,213 3, ,601 Project Free Cash Flow A$'000, Nominal (7,554) (96,546) (30,329) 27,291 28,796 (81,834) 47,637 66,572 67,864 76,064 1,238,919 Project NPV A$'000, Nominal 249, , , , , , , , , Project IRR A$'000, Real 23% 56% C1 Cash Cost A$/t, Real AISC A$/t, Real , BurnVoir Corporate Finance Limited 27 March

5 AUDUSD Less new equity required under a phased approach A phased approach can reduce dilution for shareholders Our previous valuation assumed A$120m project debt and A$120m new equity financed the 150ktpa operation. While our new production profile delays production at these levels until FY2024, it does permit a debt refinancing after a year s steady-state production has been demonstrated, with operating cashflow from the 84ktpa replacing the need to raise additional equity to fund the expansion to 169ktpa. Catalysts to valuation could come from by-products, Carnegie JV Our Sum of Parts valuation still does not attribute any value for potential magnesium by-products (e.g., hydrated magnesium carbonate production under a collaboration with EcoMag), nor any credit for sodium chloride by-product (under the recently signed LOI with WA Salt Koolyanobbing) and includes a notional valuation for the Carnegie JV derived from the BCI Minerals JV earn-in metrics. We anticipate further clarity on all three projects in the coming months, potentially with a PFS on the EcoMag project, a Scoping Study on the Carnegie JV and further information on the WA Salt LOI all providing potential positive catalysts for our Sum of Parts valuation. Table 5: Sensitivity Analysis of Kalium Lakes (NPV/ Share Impact from Changing SOP Price, AUDUSD) NPV per Share Weighted Average Realised SOP Price (US$/t SOP) 1 (A$ per share) Source: BurnVoir estimates Base Case Note: 1 Based on production weighted average of all three SOP product prices from Beyondie. Chart 1: Sensitivity Analysis of Kalium Lakes (% Sensitivity) Change in NPV (A$M, as at 30 June 2019) - A$300.0m - A$200.0m - A$100.0m + A$0.0m + A$100.0m + A$200.0m + A$300.0m + A$400.0m -10% SOP Price Kalium Lakes NPV is most sensitive to the change in the SOP price, followed by FX and capex. +10% SOP Price -25% Capex +25% Capex -10% Operating Costs +10% Operating Costs -10% FX +10% FX Source: BurnVoir estimates. Sum of Parts Valuation at 30 June 2020: hitting full production For comparison, we also include our Sum of Parts valuation in another 12 months (30 June 2020), when we anticipate KLL will exit the quarter at 84ktpa production rate, and again at 30 June 2021, when we have modelled KLL achieving a year of steady-state 84ktpa production (refer Table 6). The valuation increases from A$289m to A$369m (+28%), or from A$0.92/sh to A$1.17/sh (on a fully diluted basis). BurnVoir Corporate Finance Limited 27 March

6 Table 6. Valuation Comparison at Various Timelines Prior to Expansion 30 June June June 2021 Sum of Parts Valuation NPV Undiluted Diluted NPV Undiluted Diluted NPV Undiluted Diluted The valuation at 30 June 2020 reflects the completion of construction and that the project has achieved production at phase 1-84ktpa rate. A$M A$/sh A$/sh A$M A$/sh A$/sh A$M A$/sh A$/sh Beyondie Potash Project ` 1.50 Beyondie Magnesium Project Carnegie Joint Venture (KLL 85%) Corporate (49.7) (0.18) (0.16) (52.4) (0.19) (0.17) (53.1) (0.19) (0.17) Tax Shield Debt (80.0) (0.29) (0.25) (80.6) (0.29) (0.26) (72.5) (0.26) (0.23) Cash Total Value of Common Equity Issued Shares (M) N/A N/A N/A Source: BurnVoir estimates. Assuming the modelled project metrics are achieved, there is significant trading valuation upside relative to existing potash producers globally. Once established as a proven producer: move to a market multiple valuation? On our modelled timeline, by 30 June 2021, KLL will have operated at a stable 84kpa production rate for a year. At this time, the market may start to value the company on an earnings multiple basis. While there are few comparable peers, in Table 7 we have provided the current P/E ratios for a range of international fertiliser companies / companies with potash business segments to provide an indication of how these businesses are valued. These companies have P/E ratios averaging 22.1x, and EV/EBITDA multiples of 10.7x (weighted by market capitalisation). At the current A$0.405/sh price, these ratios compare with a P/E of 7.3x, and EV/EBITDA of 5.3x based on our modelled FY2021 earnings for KLL. If we were to apply the observed peer multiples to KLL s FY2021 earnings, on a fully diluted basis, KLL would be valued at A$1.23/sh on a P/E multiple, and at A$1.01/sh on a EV/EBITDA multiple. While it is too early to value KLL in this way, we have included this analysis to highlight the remaining value proposition should KLL deliver to our timeline on our modelled assumptions. Table 7: KLL Valuation 30 June 2021 valuation based on market multiples (at 84ktpa SOP production rate) Financial Metric Yara Tessenderlo Mosaic K+S Kali Sesoda Israel Chemicals Arab Potash Compass Minerals Weighted Average 1 P/E (x) EV/EBITDA (x) P/E Implied Valuation (A$/sh) EV/EBITDA Implied Valuation (A$/sh) Source: BurnVoir estimates, Bloomberg as at 23 March Notes. 1 Weighted by market capitalisation. 2 Assuming KLL s FY2021 modelled earnings, and KLL closing price of A$0.405/sh, 314 million shares (fully diluted basis). Kalium Lakes BurnVoir Corporate Finance Limited 27 March

7 Chart 2: Harvesting trials underway at the Beyondie Project Source: Kalium Lakes. Recent Newsflow 22 March 2018: Pilot Pond Update and Harvest Trials KLL announced that it had commenced harvesting trials, successfully using grading and continuous mining equipment to dry harvest potassium salts for processing. The trials have revealed that a salt layer only mm thick is needed to protect the 1mm HDPE pond lining before harvesting can commence. In KLL s ponds, this layer has taken 3-6 months to accumulate. KLL considers unlined offlake ponds will require a much thicker protective layer to form a trafficable surface before harvesting can commence, which may add 12 months to production timelines for these clay-based surfaces. Over 83 million litres of brine have been pumped into the evaporation ponds since KLL completed construction in August Approximately 10kt salts have crystallised to date, from which approximately 520kt SOP could be produced. 20 March 2018: WA Salt Letter of Intent to Evaluate Sodium Chloride (NaCl) Salt Products KLL may be able to monetise waste sodium chloride salts, thus reducing the environmental footprint of the Beyondie operation, and generating a by-product credit. 27 February 2018: Purification Plant Recovery Optimisation KLL reported optimisation study results obtained from testwork undertaken at K-UTEC s facilities in Germany, and at the Saskatchewan Resource Council s facilities in Canada. The results from both facilities demonstrated that plant recoveries of 90-98% can be achieved, compared with 80% assumed in the October 2017 PFS. In addition, product specifications have been met to produce a premium 51-52% K2O product, with minimal chloride content (<0.5%) and insoluble matter, paving the way for a product suite including Premium Standard SOP, Premium Granular SOP, and Premium Soluble SOP. 20 February 2018: Successful EcoMag Magnesium Pilot Trials Last month EcoMag processed Beyondie bittern (waste) samples at its pilot plant in Karratha. The results were consistent with earlier laboratory trials, producing 99.5% pure hydrated magnesium carbonate (HMC) from brines grading 8-9% Mg, with Mg recoveries exceeding 95%. Our valuation does not yet include a magnesium project as we wait for clarity on the structure and commercial arrangements with EcoMag, and for additional project and market detail to be released. BurnVoir Corporate Finance Limited 27 March

8 14 February 2018: Mining Tenure Application Submitted Following receipt of the second Native Title Agreement, KLL submitted its applications for a Mining Lease and the Miscellaneous Licences required for the Beyondie Project. KLL anticipates the tenure will be granted in Q2 CY February 2018: Environmental Approvals Update The EPA has advised that level of assessment for the Beyondie Project does not require Public Review, and KLL anticipates receiving both WA and Federal environmental approvals in Q3 CY January 2018: Second Native Title Agreement Signed The Beyondie Project is now fully covered by Native Title Agreements. 11 January 2018: Carnegie Potash Project Prospectivity Confirmed Initial auger sampling results reveal brine grades consistent with other SOP development projects in the area. The KLL-BCI Joint Venture is targeting release of a Scoping Study in Q3 CY2018. Future Newsflow We anticipate strong newsflow in the lead up to delivery of the BFS mid-year, including: Ongoing BFS results regarding purification plant optimisation, product specifications Updates on exploration and development activities; Additional Offtake MOUs for Beyondie SOP product; Receipt of Mining Lease and Miscellaneous Licence approvals (target Q2 CY2018); EPA approvals (Target Q3 CY2018); EPBC approval (Target Q3 CY2018); Updates on exploration activities at the Carnegie Joint Venture (CJV) including a Scoping Study on the Carnegie Project (Target Q2 CY2018); and Updates on the EcoMag opportunity. BurnVoir Corporate Finance Limited 27 March

9 This Research has been prepared and issued by BurnVoir Corporate Finance Limited ( BurnVoir ) and remains the property of BurnVoir. No material contained in this Research may be reproduced or distributed, except as allowed by the Copyright Act, without the prior written approval of BurnVoir. This report has been prepared and issued (in Australia) by BurnVoir Corporate Finance Limited (ABN / AFS Licence No ) ( BurnVoir ) and is subject to the disclosures and restrictions set out below. Analyst Certification The research analyst(s) identified on the cover of this report individually certify that in respect of each security or issuer that the research analyst covers that this report accurately reflects his or her personal views about any and all of the subject issuer(s) or securities. Disclosure BurnVoir has been appointed Corporate Finance Adviser to Kalium Lakes Limited. Contact with has been made during the preparation of this report for assistance with verification of facts. 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