Leo Lithium

Leo Lithium Ltd. is an emerging lithium company focused on creating value through its strategic interests in the Goulamina Lithium Project in Mali, one of the world’s highest-quality undeveloped spodumene resources. The Goulamina project, operated in partnership with global lithium leader Ganfeng, is positioned to become a significant supplier of lithium concentrate to the burgeoning global electric vehicle and energy storage markets.

With an initial mine life estimate of 20 years and scalable production capacity, Goulamina is set to deliver a long-term, reliable lithium supply, vital for the energy transition. In July 2024, Leo Lithium announced a definitive agreement to divest its 40% stake in Goulamina to Ganfeng, aiming to deliver substantial shareholder value while retaining future exposure through a trailing product sales fee (TPSF).

The company's strategy leverages its robust asset base, strategic alliances, and disciplined financial approach to create sustainable returns in a high-demand sector. Headquartered in Australia and listed on the Australian Stock Exchange (ASX: LLL), Leo Lithium is supported by an experienced management team focused on operational excellence, community engagement, and advancing the project in a challenging geopolitical landscape.

Leo Lithium presents a compelling investment opportunity as it transitions to a cash-return model following the sale of its stake in the Goulamina Lithium Project. This transaction, totaling $342.7 million USD, will allow Leo Lithium to distribute proceeds to shareholders while receiving a 1.5% gross revenue TPSF on lithium products over the next 20 years. With the anticipated rise in demand for lithium-ion batteries driven by electric vehicles and renewable energy, this TPSF structure offers long-term revenue potential with minimal operational risk.

Leo Lithium’s Goulamina project is located in a tier-one mining jurisdiction for lithium, presenting attractive economic fundamentals supported by high-grade spodumene resources. This divestment also strategically positions Leo Lithium for further investment opportunities or acquisitions within the battery materials sector. Backed by a strong balance sheet post-transaction and a commitment to shareholder value, Leo Lithium offers investors exposure to the growing lithium market with a diversified and resilient approach.

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Leo Lithium is led by a dedicated management team with deep expertise across mining, project development, and strategic finance, guiding the company through key growth and transaction phases. At the helm is Managing Director Simon Hay, a seasoned executive in the resources sector with extensive experience in lithium and battery metals. Hay’s leadership focuses on strategic value creation, efficient operations, and fostering strong partnerships in complex environments.

Ron Chamberlain, Chief Financial Officer (CFO) and Company Secretary, is a seasoned Perth based ASX 100 and 200 resources-based CFO and Company Secretary. He has extensive offshore experience including the US, Africa (South Africa, Namibia, Malawi) in both operating and project environments. 

Tim Richards, Chief Operating Officer, is a mining engineer with an MBA from the University of Oxford. He brings over twenty years of mining experience to Leo, across the full range of asset development and operations including scoping and feasibility studies, site technical services, operations and mine management.

Together with a skilled team of advisors and board members, Leo Lithium’s management is well-equipped to navigate the dynamic lithium market, focusing on shareholder returns and responsible project execution.

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Leo Lithium’s growth strategy centers on maximizing value from its strategic divestment and TPSF arrangement while exploring new investment avenues in the battery materials sector. By divesting its 40% interest in the Goulamina project, Leo Lithium will secure a stable revenue stream aligned with lithium market demand. This unique structure allows the company to benefit from ongoing market growth without operational exposure, enabling a focused approach to shareholder returns.

With a strengthened balance sheet post-divestment, Leo Lithium plans to assess high-value opportunities that align with its strategic focus on battery materials. The company’s disciplined approach to growth involves evaluating acquisitions, partnerships, or projects that reinforce its position within the lithium and broader battery materials markets. Committed to environmental, social, and governance (ESG) principles, Leo Lithium integrates responsible development practices into its growth initiatives, ensuring long-term value creation for shareholders in a sustainable manner.

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Leo Lithium is positioned to deliver strong financial returns to shareholders through its structured divestment strategy. The sale of its remaining 40% interest in the Goulamina Lithium Project to Ganfeng is set to generate $342.7 million USD in proceeds. This transaction is divided into two tranches: an initial payment of $161 million USD expected in late 2024 and a final payment of $171.2 million USD by mid-2025. These proceeds will support shareholder distributions, with the first tranche estimated to yield a return of approximately $0.13-$0.16 AUD per share.

In addition to the sale proceeds, Leo Lithium’s agreement includes a 1.5% trailing product sales fee (TPSF) on revenue from lithium products generated by the Goulamina project for up to 20 years. This revenue-sharing arrangement offers ongoing, risk-adjusted income potential, leveraging anticipated growth in global lithium demand without the operational costs typically associated with mineral production. With a robust cash position post-divestment and a focus on prudent capital allocation, Leo Lithium is well-equipped to pursue new growth initiatives or reinvest in shareholder returns.

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Leo Lithium Ltd. is strategically positioned to deliver substantial value to shareholders through its disciplined approach to capitalizing on the growing lithium market. With the divestment of its interest in the Goulamina Lithium Project, Leo Lithium has secured immediate financial returns while retaining long-term revenue potential through a 1.5% trailing product sales fee. This innovative structure provides the company with ongoing exposure to the rising demand for lithium without the operational risks associated with mining in Mali.

Guided by a seasoned management team and backed by a strong balance sheet, Leo Lithium is well-prepared to explore new opportunities in the battery materials sector, leveraging its cash position to enhance shareholder value further. The company remains committed to responsible governance and environmental sustainability, ensuring that future growth aligns with high ESG standards.

As global demand for lithium intensifies, Leo Lithium offers a unique investment opportunity with a de-risked approach, delivering both immediate and long-term returns. Through its strategic divestment, strong cash reserves, and commitment to sustainable growth, Leo Lithium is poised to become a resilient and forward-thinking player in the lithium industry, providing shareholders with reliable, high-potential exposure to the clean energy transition.

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