General Comments & Banter, page-13182

Hey all,

Haven't had much time to worry about the day to day goings on of late but thought I'd share some interesting developments that have transpired over recent days with GXY SdV update and the ORE qtly call/update.

GXY have decided to end its process of shopping around for a JV partner mainly due to unattractive terms being offered ATM given the current subdued market sentiment.

ORE haven't been producing BG for several months now hence their weak pricing in the last qtr due to only selling a tech grade product. Their justification for this centres around the weather / rain event in early Feb diluting concentrated brine feedstock which could be an excuse IMO hiding other critical issues with the plant producing top spec product.

In the call they finally gave ground on this during the Q&A, explaining the product mix for the upcoming qtr will be 'skewed' towards prime grade (tech) v purified (BG) with an approx split of 85/15.

They also made mention of the BG product qualification process they are undertaking highlighting it takes several months and back and forth with potential customers. To me this implies they don't have really have an existing customer base for their 'Purified' BG product.... I tend to think even ORE's purified BG most likely needs further refining to be up to standard for cathode makers and hence their focus has been on increasing prime grade output to help them get closer to the ever elusive nameplate capacity.

All of the above gives credence to AGY's achievements to date IMO and the ability to produce BG product from what many so-called experts label a sub-standard resource...

No doubt it's a tough market at the moment and holding off on a S3 deal is probably a good idea at present.

In saying that, Mgt and the local Puna team need to get cracking on a 'Stage 2' size scale/module plant (1500-200tpa) to prove to the market they have the capability to deliver decent volume. Given the recent rights placement they are now in a position to do this at either the Olacaputo site or as they have implied, build a modular setup at Mina Romulo. My only concern about the latter is the additional cost involved with a 'Greenfield' site (Ie. setting up power/water/campsite etc) when from my understanding all of this is pretty much sorted at Olacaputo ? Downside to utilising the easement at Olacaputo is trucking concentrated brine to site but it is only 15kms so they could probably buy a 2nd hand tanker for this purpose. Comparatively, SQM/ALB truck their concentrated brine ~350km to their processing plants on the outskirts / foothills of Antofagasta.

Hoping the upcoming qtly report addresses some of these questions and what the plan is to scale up production and provide some timelines... Keep in mind, the abundant concentrated feedstock that will be available to them later this year for processing.

Hope everyone has a good easter