Ann: Bankable Feasibility Study Activity Slowed, page-447

Like many, this announcement came as a shock.
Especially when the previous announcements were painting a very different picture.

They decided to upgrade to 20mtpa on the basis of far superior economics.
It also gave me significant confidence that they wouldn't have any issues with funding.
Why would you totally drop the 10mtpa and only focus on 20mtpa if you had any concerns?

Questions need to be asked, why take the risk if they were not 100% confident.
A lot on HC had concerns with the scale with a fraction of information. But Management didn't.

As a result of the slow down, Shareholders confidence has been shattered. Hence the capitulation of the share price.
Rightly so, does anyone know what is currently happening?

Management has to take accountability for limiting the BFS to only 20mtpa.
In hindsight, they should have kept shareholders informed, we are going for a best case scenario, but are prepared for any outcome.
"Our main objective is 20mtpa, however if any issues arise we have backup plans for a 5-10mtpa project that will scale over time"

Would we have seen such a capitulation if this was prior knowledge?
Instead management are now doing emergency meetings to find the best way forward.
This should have already been on standby. That's what I'm disappointed and frustrated about.

I doubt there was a whistleblower as we had record low volume prior to the recent announcement.
If anything it shows they run a very tight ship.

Where to now, for me its impossible to know until management releases a plan.
I believe any CR or LDA style agreement is going to cause significant dilution and lack support from very hurt shareholders.

I believe the only way they can turn this tide is from industry support.
A smaller output could be used as a negotiation tool. Apparently we have a conga line of buyers?
With less supply, couldn't off take agreements be put in place to secure Hawsons future?
What deal would need to be offered to entice one of our buyers?
Would a 50% discount on initial 1mt be worth it for a cash advance from one of these buyers?

Either way our new plan needs to be bullet proof.
Like I said, this should have already been done.
Not wasting time evaluating what to do.

I believe management can still redeem themselves.
But must act quickly.