Lithium opportunities at Lake Johnston, page-13

Hi POSters,

Forget about the lithium, it is just a side line at this stage. Let's focus on our nickel.

This won't win me any popularity contests but if they were handing out awards for the most cynical group of h.c. posters it would be us in first, second and third places. I do not blame you folks, scepticism about POS is fair enough given our long standing failure to get back into production. However, I am calling it now – I think we are finally ready to launch.

POS has always been a classic big risk/big reward scenario and a few weeks back someone posted an excellent summation of the potential downside, including technical mining issues, global uncertainties, Indo nickel etc. Anyone looking to take a punt should look carefully through that post first because they were all valid points. That said and as I have previously commented, whilst shareholders might be frustrated at the pace of progress, actually, imo, there has been considerable forward momentum as the company methodically positions itself for production.

The metallurgical work has been completed and that is absolutely crucial, especially as we are wanting to produce battery grade nickel. This has also improved our recovery rate and it maximises our flexibility in regard to blending ores for the processing plant. Most importantly, it helps in addressing one of the key matters that has previously hampered our restart - increasing our life of mine to at least five years. Pre-refurbishment
works have been undertaken including some dewatering I think and updating infrastructure such as railings. This preliminary work, whilst tedious and unglamorous, has been about de-risking the project as much as possible so the company and especially potential financiers, can sign off on getting underway.

For me, all this points to announcing the BFS ahead of the forthcoming agm, in line with managements revised timetable. With the nickel price likely to trend upwards from a base of around $10/lb and our cost of production of circa $6.50 or less, it is pretty reasonable to assume a very positive BFS - which will support funding for the approx. $50m refurbishment. Yep, mark it down and call me Nostradamus because I think this is finally our time to shine.

As ever, DYOR.

Cheers
U