Ann: Corporate and Operations Update, page-214

Just trying to understand more about the financial sustainabilitity of Alita, relatively new here so bear with me.

In the Quarterly CashFlow Report released for Sep18-Dec18, there was an estimated cash outflows for Jan19-Mar19 which totaled A$51,100,000 (Production costs = A$35,000,000). In the Quarterly CashFlow Report released for Jan19-Mar19, the cash outflows were lesser.



In the Quarterly CashFlow Report released for Jan19-Mar19, there was an estimated cash outflows for Apr19-Jun19 which totaled A$56,250,000 (Production costs = A$37,400,000). In the Quarterly CashFlow Report released for Apr19-Jun19, the cash outflows were slightly lesser... but A$6 million higher than the previous quarter (which I do not understand why if the throughput and cash production cost was similar to the previous quarter). And in the Quarterly CashFlow Report released for Apr19-Jun19, there is an estimated cash outflows for Jun19-Sep19 which totaled A$57,700,000 (Production costs = A$42,100,000). How come there is an increase estimation of Production costs of +A$12 million (vs Jan19-Mar19) and + A$7 million (vs Apr19-Jan19)?

Is the company just being conservative with their numbers and how accurate are the numbers presented in these statements.



I too am a firm believer of lithium. Not just in EV, there are so many R&D on batteries in the various Mode of Transport (ie electric vessels). With IMO 2020 in place and the increase advocacy for reduction of greenhouse gases, ... I envision a place run by clean electricity (increased offshore wind, solar energy) and to do that, you've got to have more batteries. This movement will take awhile especially when there are news of batteries explosion and safety issues, but at least we know things are progressing (not like we can do anything about them).

Really appreciate all the sharings done in this forum. I too do not understand why the market reacted this way, but that is the beauty of the market. Only time will tell and let's just hope that the numbers that we are seeing now is temporary. I believe that the BoD are trying their best to navigate this turbulent market and are making the best possible decisions for the company.