Good News & Bad News, page-5584

What to do with the potential, enormous positive cash flow next year.
I imagine Ken and his team have spent a very significant amount of time
during the second half of this year developing multiple cash flow scenarios
and strategic initiatives for 2022 and beyond.

I don't buy into stock buybacks or dividends and I say that as a now 81 year old
with unfortunately a narrowing horizon. lol. My hope is that their thinking is along
the following lines in terms of prioritizing the use of excess cash flow.

1) Based upon pilot plant results build out the production of lithium salts.
2) Expand production capacity of the existing two plants to 1 million tons per year.
3) Insure that harbor facilities can handle efficiently the increased volume.
4)Fully support the POSCO program.

Lets stop for a second now and visualize where we then stand. First and foremost,
the level of our experience in mining and processing lithium would be enormous. The
expansion work force is on hand and the cash position continues to swell. Let me ask you,
is their really a need to become overly creative in what we decide to do now?

I believe the paramount question we have at that point is in just two areas. First, how much
can we further expand the existing facilities? Can we go to 1.5 million tons per year? All the
experience and talent is right there ready to go. Second, do we expand further with POSCO.

To me the watchword going forward is expansion and NOT acquisition. Better the devil you know
than the devil you don't.