Showing posts with label Outlook. Show all posts

Friday, November 1, 2024

AMD's focus on high-performance computing, strategic acquisitions, and expansion into new markets positions the company for continued growth, with emphasis on U.S.-based research and participation in national initiatives like the CHIPS Act

Investment Report on Advanced Micro Devices (AMD)

Ticker: AMD
Exchange: NASDAQ
Industry: Semiconductors

Executive Summary

Advanced Micro Devices (AMD) is a leading global semiconductor company specializing in high-performance computing, graphics, and visualization technologies. The company's strategic acquisitions of ATI Technologies and Xilinx have significantly expanded its technology portfolio and market reach. This report provides a comprehensive analysis of AMD's technology, growth prospects, financials, competitors, clients, contracts, and emphasizes its chip developments in the United States.

Company Overview

Founded in 1969 and headquartered in Santa Clara, California, AMD designs and integrates technology that powers millions of intelligent devices, including personal computers, gaming consoles, and cloud servers. The company's mission is to build great products that accelerate next-generation computing experiences.

Technology Portfolio

1. Central Processing Units (CPUs)

Zen Architecture: AMD's Zen microarchitecture has revolutionized its CPU offerings. The successive generations (Zen, Zen 2, Zen 3, and Zen 4) have consistently improved performance, power efficiency, and core counts.
Ryzen Processors: Targeted at consumer desktops and laptops, Ryzen CPUs offer competitive performance for both gaming and productivity.
EPYC Processors: Designed for data centers and enterprise applications, EPYC CPUs provide high core counts and superior performance-per-dollar metrics.

2. Graphics Processing Units (GPUs)

Radeon Graphics: Acquired through the 2006 acquisition of ATI Technologies, Radeon GPUs serve both the consumer and professional markets.
- RDNA Architecture: Powers the latest generation of Radeon GPUs, offering significant performance and efficiency gains.
- Instinct Accelerators: Targeted at data center and AI workloads, providing high-performance computing solutions.

3. Field-Programmable Gate Arrays (FPGAs) and Adaptive Computing

Xilinx Acquisition: Completed in 2022, this acquisition brought in expertise in FPGAs, System-on-Chip (SoC), and Adaptive Compute Acceleration Platform (ACAP) technologies.
- Versal Platform: Combines scalar processing, adaptable hardware, and intelligent engines for AI and big data applications.
- Zynq SoCs: Integrated platform for embedded systems, enhancing AMD's presence in automotive, aerospace, and industrial markets.

Growth Prospects

1. Data Center Expansion

Market Penetration: AMD's EPYC processors are gaining market share in the data center space, competing effectively with Intel's Xeon processors.
Cloud Partnerships: Collaborations with major cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.

2. Artificial Intelligence and Machine Learning

Integrated Solutions: Combining CPU, GPU, and FPGA technologies to offer comprehensive AI and machine learning solutions.
Software Ecosystem: Development of ROCm (Radeon Open Compute) platform to support AI developers.

3. Gaming and Graphics

Console Partnerships: AMD supplies custom chips for Sony's PlayStation 5 and Microsoft's Xbox Series X|S consoles.
PC Gaming: Continuous release of high-performance Radeon GPUs to meet the demands of PC gamers.

4. Embedded and Automotive Markets

Xilinx Synergy: Leveraging Xilinx's expertise to expand into embedded systems, automotive electronics, and industrial applications(Ai)

Financial Analysis

1. Revenue Growth

Consistent Increase: AMD has reported year-over-year revenue growth, driven by strong performance in its Computing and Graphics segment and Enterprise, Embedded, and Semi-Custom segment.
Diversified Income Streams: Revenue is well-distributed across various sectors, reducing dependency on a single market.

2. Profitability

Improving Margins: Gross margins have improved due to a favorable product mix and operational efficiencies.
Net Income Growth: Increased profitability reflects successful product launches and market acceptance.

3. Balance Sheet Strength

Cash Reserves: Healthy cash positions enable continued investment in R&D and strategic initiatives.
Debt Management: Prudent management of debt levels post-acquisitions ensures financial stability.

Competitors

1. Intel Corporation

Market Share Leader: Intel remains the dominant player in the CPU market but has faced challenges with manufacturing delays and process technology transitions.
Competitive Pressure: AMD's Zen architecture has narrowed the performance gap, increasing competition.

2. NVIDIA Corporation

GPU Market Leader: NVIDIA holds a significant share in the discrete GPU market and leads in AI and data center GPU solutions.
AI and Data Center Dominance: NVIDIA's CUDA platform and ecosystem present strong competition in AI workloads.

3. Other Competitors

Qualcomm: Competes in the embedded and mobile processor markets.
Apple: With its in-house M1 and M2 chips, Apple presents competition in the consumer laptop and desktop space.

Clients and Contracts

1. Enterprise and Cloud Providers

AWS, Azure, Google Cloud: AMD supplies CPUs and GPUs for their cloud infrastructure, enabling various compute instances for customers.
Data Center Operators: Partnerships with companies like IBM and Oracle.
OpenAI is integrating AMD's new MI300X chips through Microsoft's Azure infrastructure.

2. Consumer Electronics

Sony and Microsoft: Long-standing relationships providing custom SoCs for gaming consoles.
PC OEMs: Collaborations with Dell, HP, Lenovo, and others for consumer and business PCs.

3. Automotive and Industrial

Automotive Electronics: Post-Xilinx acquisition, AMD supplies chips for advanced driver-assistance systems (ADAS) and infotainment.
Industrial Applications: FPGAs and adaptive computing solutions for robotics, aerospace, and defense.

U.S. Chip Developments

1. Research and Development

Domestic Innovation: AMD's R&D efforts are primarily based in the United States, focusing on advancing semiconductor technologies.
Collaboration with U.S. Institutions: Partnerships with universities and research labs to drive innovation.

2. Manufacturing and Supply Chain

Outsourced Fabrication: While AMD designs its chips in the U.S., manufacturing is outsourced to leading foundries like TSMC.
Support for U.S. Manufacturing Initiatives: AMD is involved in industry efforts to bolster domestic semiconductor manufacturing capabilities.

3. Government Initiatives

CHIPS and Science Act: AMD is poised to benefit from U.S. government investments aimed at strengthening the domestic semiconductor industry.
National Security Contracts: Supplying technology for defense applications, emphasizing the importance of U.S.-based design and development.

Strategic Acquisitions

1. ATI Technologies (gaming)

Acquisition Year: 2006
Impact: Brought in graphics expertise, leading to the development of Radeon GPUs.
Integration Success: Enabled AMD to offer integrated CPU and GPU solutions (gaming).

2. Xilinx

Acquisition Year: 2022
Impact: Expanded AMD's portfolio into FPGAs, adaptive computing, and embedded systems(Ai).
Market Expansion: Access to new markets like automotive, aerospace, and industrial sectors.

Challenges and Risks

1. Competitive Pressure

Technological Advancements: Keeping pace with rapid advancements from competitors requires significant R&D investment.
Market Share Battles: Intense competition in both CPU and GPU markets can impact pricing and margins.

2. Supply Chain Dependencies

Manufacturing Outsourcing: Reliance on third-party foundries like TSMC exposes AMD to supply chain disruptions.
Global Semiconductor Shortages: Industry-wide shortages can affect production and delivery schedules.

3. Integration Risks

Post-Acquisition Integration: Successfully integrating Xilinx's operations and cultures poses challenges.
Realizing Synergies: Achieving the projected benefits from acquisitions is crucial for long-term success.

Outlook

AMD's focus on high-performance computing, strategic acquisitions, and expansion into new markets positions the company for continued growth. The emphasis on U.S.-based research and participation in national initiatives like the CHIPS Act demonstrates AMD's commitment to domestic technological leadership.

Conclusion

Advanced Micro Devices has transformed itself into a key player in the semiconductor industry through innovation and strategic acquisitions. The integration of ATI and Xilinx has broadened its technological capabilities and market opportunities. With strong growth prospects in data centers, AI, gaming, and embedded systems, AMD is well-positioned to navigate the competitive landscape and capitalize on emerging trends.

Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

Why we bought both AMD and Micron Technologies in October and the impact of the Chips Act!

We bought LAM Research Corp (LRCX) today under $70 PS - Here's why!

Wednesday, July 24, 2024

SentinelOne stands to benefit significantly from recent issues with CrowdStrike's technology in the burgeoning cyber security market

Here's how SentinalOne is a beneficiary of the recent turmoil in worldwide IT tech as a result of the recent, faulty, Crowdstrike upgrade that caused so much confusion around the world

Market Opportunity: CrowdStrike recently experienced an outage that negatively impacted its reputation and potentially its sales process. This incident has created an opening for competitors like SentinelOne to capture market share. SentinelOne’s focus on endpoint protection, similar to CrowdStrike's, positions it well to attract customers seeking reliable alternatives (Seeking Alpha) (Seeking Alpha).
Technological Edge: SentinelOne’s Singularity Platform, which leverages an AI-driven agent for real-time threat detection and prevention, operates locally on each endpoint. This provides fast, autonomous protection without the need for constant cloud connectivity, contrasting with CrowdStrike's cloud-native approach. This architectural difference can be appealing to customers looking for robust on-premise security solutions (Cynet).
Improving Financials: SentinelOne has shown impressive growth in financial performance, achieving positive free cash flow and improving profit margins. This financial stability, coupled with the recent missteps of CrowdStrike, makes SentinelOne an attractive investment and operational choice for businesses looking for a reliable cybersecurity partner (Seeking Alpha).
Industry Trends: The cybersecurity market is growing, and recent macro trends favor companies that integrate AI into their offerings. SentinelOne has been promoting the benefits of AI in cybersecurity, and as this trend continues, it is likely to see increased interest and investment (Seeking Alpha) (Cynet).

Financial Outlook

SentinelOne has shown strong financial performance and positive outlooks. In the fiscal year 2024, SentinelOne reported significant growth, with revenue increasing by 47% to $586.4 million and Annualized Recurring Revenue (ARR) growing by 39% to $724.4 million. For the first quarter of fiscal year 2025, the company reported a 40% year-over-year revenue growth and achieved its first-ever quarter of positive free cash flow, a significant milestone in its growth journey (SentinelOne) (SentinelOne).

SentinelOne has been improving its financial metrics steadily. The company has demonstrated strong revenue growth while also making significant strides toward profitability. Non-GAAP gross margins have increased from 52% to 79% in recent years, and the company has achieved non-GAAP earnings break-even and a free cash flow margin of 18% (SentinelOne).

Technical Outlook

Technically, SentinelOne continues to innovate and strengthen its product offerings. The company's Singularity Platform, which provides endpoint protection, detection, and response, leverages AI and machine learning to offer real-time threat detection and mitigation. This platform is designed to operate both on-premise and in the cloud, offering flexibility to meet various customer needs (TechRepublic).

SentinelOne's focus on AI-driven cybersecurity solutions positions it well in the market. The Singularity Platform's AI capabilities, combined with behavioral analysis, enable it to autonomously detect and mitigate threats across multiple devices, including desktops, laptops, servers, and IoT devices (Cynet).

SentinelOne's strong financial growth, strategic focus on AI, and innovative cybersecurity solutions indicate a promising future for the company in both financial and technical aspects.

Overall, SentinelOne is well-positioned to capitalize on CrowdStrike's recent problems by offering a robust, AI-driven security solution and demonstrating strong financial health.

Discl: We are long $S on Nasdaq

Friday, February 10, 2012

Talison Q2 results and 2012 outlook very positive

Talison Lithium Limited

TSX : TLH

February 10, 2012 06:00 ET

Talison Lithium Reports Second Quarter Fiscal 2012 Results

Higher pricing agreed, declining cash operating costs, strong operating cash flow and advancement in growth projects reaffirm Talison's leadership position in the global supply of lithium

PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 10, 2012) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH)

SECOND QUARTER HIGHLIGHTS

15% price increase secured across the product range from January 1, 2012
Production of 89,015 tonnes, a 7% year over year increase
EBITDA margin increased to 24% due to a 10% year over year decline in cash operating costs per tonne
Strong operating cash flow of A$12m, compared to (A$4.3m) for the same period a year ago
Port congestion in late December 2011 resulted in approximately 38,000 tonnes lithium concentrate being delayed into fiscal Q3, but no change in full fiscal 2012 outlook
The preliminary engineering study for the Minerals Conversion Plant was completed. The next phase of the project was initiated and a location for the plant has been selected
Construction of the Stage 2 Expansion of the Greenbushes Lithium Operations remains on schedule and on budget
Outlook remains positive, with demand for chemical-grade lithium concentrate from new and existing customers remaining solid during Q2

SECOND QUARTER HIGHLIGHTS	Three Months ended December 31 (unaudited)		Year Over Year
(in thousands A$, unless noted otherwise)	FY12	FY11	% Change
Sales Volume (tonnes lithium concentrate)	75,221	97,559	(23%)
Sales Price (Average US$/tonne)	US$310	US$315	(2%)
Revenue	$22,686	$32,810	(31%)
Cash Operating COGS ($/tonne lithium concentrate)	$187	$208	(10%)
EBITDA	$5,387	$7,233	(26%)
EBITDA Margin	24%	22%	+169bps
Net Profit	$5,642	$5,297	7%
Basic EPS (cents/share)	5.2	5.6	(7%)
Approx. Volumes Sold (t/LCE⁽¹⁾)	11,200	14,500	(23%)
Approx. Production (t/LCE)	13,200	12,400	7%

Note:

	(1) LCE means lithium carbonate equivalent.

Talison Lithium Limited today announced results for the second quarter of the 2012 fiscal year(1).
"We were very pleased with our achievements during the second quarter, in particular the decline in cash operating costs, our strong operating cash flow, the move to the next phase in the development of our Minerals Conversion Plant and the 15% price increase achieved from January 1, 2012." Peter Oliver, Chief Executive Officer and Managing Director commented. "The delay of some shipments into the third quarter due to unplanned Port shutdowns negatively impacted our financial results for the quarter. However, the results were still pleasing and with the recognition of the delayed sales in the third quarter, our fiscal 2012 expectations have not been affected."

SECOND QUARTER FINANCIAL RESULTS
Talison sold 75,221 tonnes of lithium concentrate (approximately 11,200 tonnes LCE) in the second quarter, representing a 23 per cent decline over the corresponding period of fiscal 2011. Sales of lithium concentrate during the six months ended December 31, 2011 represented a 4 per cent increase over the corresponding period of fiscal 2011.

Sales in the quarter were affected by significant congestion at the Port of Bunbury due to berth closures and unplanned Port shutdowns impacting all Port users. This resulted in approximately 38,000 tonnes of Talison's lithium concentrate sales that were ready at the Port for shipment in early December being delayed into January 2012. These shipments departed early January and will be included in third quarter sales.
Investors are cautioned that sales are made in large shipments that can be irregular in timing and in varying proportions of technical-grade and chemical-grade lithium concentrates. The irregular timing of shipments and varying proportions of technical-grade and chemical-grade lithium concentrates can result in variations in individual quarters between production and sales, the average sales price and average cash operating cost per tonne sold.

Talison generated revenue of A$22.7 million in the quarter, a 31 per cent decline from the second quarter of fiscal 2011 due to a combination of the shipment delay, and a 4 per cent increase in the value of the A$ against the US$ from the second quarter of fiscal 2011.

The Company realized an average sales price per tonne of lithium concentrate of US$310, a 2 per cent decrease over the second quarter of fiscal 2011, due to a lower proportion of higher value technical-grade products sold during the quarter, compared to the same period in fiscal 2011. Underlying technical-grade prices between the two periods increased by an average of 13% in US$ terms.

Production volume increased 7 per cent over the second quarter of fiscal 2011 to 89,015 tonnes of lithium concentrate (approximately 13,200 tonnes LCE).

Cash operating cost of goods sold per tonne of lithium concentrate was A$187, a 10 per cent decline over the second quarter of fiscal 2011 due to the new lithium mineral reserve announced in May 2011 and a 7% increase in the chemical-grade plant yield.

EBITDA(2) was A$5.4 million, reflecting an increase of 169bps in the EBITDA margin to 24 per cent of revenue despite a 4 per cent appreciation in the value of the A$. A constant exchange rate would have resulted in an EBITDA margin of approximately 27 per cent, reflecting the increase in average sales price and reduction in cash operating cost of goods sold during the quarter.

(1) Information in this press release is in relation to the unaudited condensed consolidated interim financial statements of Talison as at December 31, 2011 and for the three and six months ended December 31, 2011 (collectively, the "Financial Statements") and should be read in conjunction with Financial Statements. The financial information contained in this press release is derived from the Financial Statements, which were prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts in this press release are expressed in Australian dollars ("A$") unless otherwise identified. References to "C$" are to Canadian dollars and references to "US$" are to United States dollars.

(2) The term "EBITDA" is a non-IFRS financial measure. For further information and a reconciliation of EBITDA to its IFRS-compliant income statement, refer to "Non-IFRS Performance Measures" in Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at and for the interim period ended December 31, 2011 (which can be found on Talison's SEDAR profile at www.sedar.com).

SECOND QUARTER OPERATIONS
During the quarter Talison advanced its growth projects.

Greenbushes Stage 2 Expansion
The Stage 2 Expansion at the Greenbushes Lithium Operations remains on budget and on schedule. During the quarter, foundations for the new chemical-grade plant were completed, installation of steelwork was nearing completion, and the conveyor belt to the finished product stockpile was in construction. Talison continues to expect commissioning of the Stage 2 Expansion during the fourth quarter of fiscal 2012.

To view the "Stage 2 Expansion progress at the Greenbushes Lithium Operations" photo, please visit the following link: http://media3.marketwire.com/docs/greenbushes_stage2.jpg

Minerals Conversion Plant
Responding to growing global demand for an additional secure supply in lithium chemicals, Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate ("Minerals Conversion Plant"). The preliminary engineering study in relation to the proposed construction of the conversion plant was completed during the second quarter.

The next phase of the project, which includes an engineering study for a 20,000 tonnes per annum lithium carbonate plant and obtaining the required environmental and regulatory approvals, commenced in early calendar 2012. As recently reported, the Kwinana Industrial Area, located 40km south of Perth in Western Australia has been selected as the location for the plant and Talison is currently finalizing tenure arrangements for its preferred site. Talison anticipates making an investment decision on the project by the end of calendar 2012 and is targeting commissioning during 2015.

Discussions with potential customers are continuing positively. As recently reported, Talison has entered into Memoranda of Understandings (MOU) with Sojitz Corporation and Mitsui & Co. Ltd. The MOUs provide a framework on which to discuss on a non-exclusive basis collaborative marketing and distribution of lithium carbonate produced by Talison to customers in Japan.

To view the "Location of the proposed Minerals Conversion Plant in the Kwinana Industrial Area" photo, please visit the following link: http://media3.marketwire.com/docs/talison_mineralplant.jpg

Greenbushes Resource Development and Salares 7 Project
Due to the encouraging progress in the development of the Minerals Conversation Plant, Talison is accelerating resource drilling at the Greenbushes Lithium Operations. The Company's objective is that lithium mineral reserves will be increased and the mine life extended to support future additional expansions of the lithium concentrate processing plants and a potential doubling in capacity of the minerals conversion plant. Talison expects to invest approximately A$1.9 million during fiscal 2012 in this resource definition drilling program.

Consequently, Talison is reallocating resources for the balance of fiscal 2012 from the Salares 7 Project. The drilling program at the Salares 7 project will be deferred and the focus will be on the environmental approvals process. This is not expected to affect the overall development timetable for the Salares 7 Project.

FISCAL 2012 OUTLOOK
Talison expects production of lithium concentrate in the third quarter to be in-line with the second quarter of fiscal 2012. Sales of lithium concentrate during the third quarter will include the 38,000 tonnes delayed during the second quarter of fiscal 2012. Sales are expected to materially match production for the nine months ending March 31 2012.

For the full 2012 fiscal year, Talison expects production and sales tonnages to be consistent with the nine months ended March 31, 2012, on an annualized basis.

During the second quarter, Talison negotiated with its customers a 15% price increase across its entire product range. The price increase applies to sales of chemical-grade lithium concentrate in the third and fourth quarter of fiscal 2012 and for technical grade lithium concentrate sales for the full 2012 calendar year.

SECOND QUARTER FINANCIAL RESULTS CONFERENCE CALL
Talison will host a conference call to discuss the financial results on Monday, February 13, 2012 at 8:30 a.m. (EST). The call is being webcast by Thomson Reuters and can be accessed at www.earnings.com or at Talison's website, www.talisonlithium.com.

The unaudited interim consolidated financial statements and Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at and for the interim period ended December 31, 2011 are accessible at Talison's website, www.talisonlithium.com.

Teleconference call details are as follows:

North America: +1 (800) 299-8538

International: +1 (617) 786-2902

Participant Code: 27020177

Chairperson: Peter Oliver, Chief Executive Officer and Managing Director

Replay

Available from: February 13, 2012, 10:30 a.m. (EST)

Available to: February 20, 2012

Dial In: +1 (888) 286-8010

International: +1 (617) 801-6888

Passcode: 44937066

ABOUT TALISON

Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars (brine lakes and surrounding concessions) located in Region III, Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.

FINANCIAL STATEMENTS

INCOME STATEMENT	Three Months Ended December 31, 2011 (Unaudited)	Three Months Ended December 31, 2010 (Unaudited)	Six Months Ended December 31, 2011 (Unaudited)	Six Months Ended December 31, 2010 (Unaudited)⁽¹⁾
INCOME STATEMENT	A$'000	A$'000	A$'000	A$'000
Sales revenue	22,686	32,810	48,565	53,882
Operating costs	(14,097)	(21,442)	(30,691)	(34,677)
Other income / (expenses)	(3,202)	(4,135)	(6,361)	(7,202)
EBITDA⁽³⁾	5,387	7,233	11,513	12,003⁽²⁾
Depreciation and amortization	(725)	(1,047)	(1,413)	(1,867)
Net financing income / (costs)	589	(1,186)	1,446	(5,045)
Net realized US$ hedging gain	975	677	3,023	637
Net realized foreign exchange gain / (loss)	581	5,746	1,012	9,195
Net fair value gain/(loss) on financial assets and liabilities	1,065	(3,093)	(5,354)	2,974
Income tax (expense) / benefit	(2,230)	(3,033)	(2,978)	(6,726)
Net profit/(loss) for the period	5,642	5,297	7,249	11,171


Basic earnings per share (cents/share)⁽⁴⁾	5.2	5.6	6.7	15.1
Diluted earnings per share (cents/share)⁽⁴⁾	5.2	5.4	6.7	14.6
Basic weighted average number of shares	107,771,151	94,484,098	107,751,096	74,018,163


Notes:

	(1)	The financial results for the six months ended December 31, 2010 are comprised of the results of Talison for the period from August 12, 2010 to December 31, 2010 (i.e., post-Reorganization) and the carve-out results of the Greenbushes Lithium Operations for the period from July 1, 2010 to August 11, 2010 (i.e., pre-Reorganization). Readers are cautioned that the results for the period from July 1, 2010 to August 11, 2010 may not be reflective of the ongoing affairs of Talison.

	(2)	EBITDA for the six months ended December 31, 2010 included A$1.6 million in non-recurring Reorganization costs.

	(3)	EBITDA is a non IFRS financial measure. For a reconciliation of EBITDA to its IFRS compliant income statement, see "Non-IFRS Performance Measures".

	(4)	Basic and diluted earnings per share have been calculated based on the weighted average number of shares on issue. For the three and six months ended December 31, 2011, the weighted average number of shares includes both the outstanding ordinary shares of Talison adjusted to remove ordinary shares held by the Talison Long Term Incentive Plan Trust which is consolidated under IFRS, and the exchangeable shares of Talison Lithium Exchangeco Limited, an indirect wholly-owned subsidiary of Talison that are exchangeable (on a one-for-one basis) for ordinary shares of Talison. For the three and six months ended December 31, 2010, the weighted average number of shares includes the outstanding ordinary shares of Talison adjusted to remove ordinary shares held by the Talison Long Term Incentive Plan Trust which is consolidated under IFRS, the exchangeable shares of Talison Lithium Exchangeco Limited that are exchangeable (on a one-for-one basis) for ordinary shares of Talison, and the ordinary shares of Talison Minerals adjusted for the Talison Minerals share consolidation which occurred as part of the Reorganization.

STATEMENT OF FINANCIAL POSITION	As at December 31, 2011 (Unaudited) A$'000	As at June 30, 2011 (Audited) A$'000
Assets
Cash and cash equivalents	84,287	102,605
Trade and other receivables	13,773	21,543
Inventories	19,874	11,182
Derivative financial instruments	4,410	10,205
Property, plant and equipment	127,078	95,215
Exploration and evaluation assets	59,467	61,714
Total assets	308,889	302,464
Liabilities
Trade and other payables	12,455	12,380
Interest-bearing liabilities	28,326	29,243
Tax payable	3,970	-
Provisions	14,724	14,668
Derivative financial instruments	160	-
Deferred tax liabilities	8,552	10,622
Total liabilities	68,187	66,913
Shareholders' equity	240,702	235,551


	As at December 31, 2011 (Unaudited) A$'000	As at June 30, 2011 (Audited) A$'000

Outstanding number of shares
Ordinary shares of Talison	111,542,053	110,527,347
Exchangeable shares of Talison Lithium Exchangeco Limited⁽¹⁾	528,465	1,494,239
Shares held in trust⁽²⁾	(4,299,367)	(4,299,367)
Total outstanding number of shares	107,771,151	107,722,219


Notes:

	(1)	The exchangeable shares of Talison Lithium Exchangeco Limited are exchangeable (on a one-for-one basis) for ordinary shares of Talison.

	(2)	On June 7, 2011, Talison Lithium established the Incentive Plan Trust. Talison Lithium issued 3,862,767 ordinary shares to the Incentive Plan Trust and the Incentive Plan Trust purchased 436,600 ordinary shares of Talison Lithium on-market.

Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the Financial Statements and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2011 dated September 23, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Contact Information

Gary Dvorchak, CFA
+1 (310) 954-1123
gary.dvorchak@icrinc.com