Questions and concerns to raise at the EGM on July 17th, 2023, page-77

Well I got a swift response back ... and since Dougal said he would have liked to have had the read for responses for all shareholders ... I think its reasonable and provide it as a "service" for other retail shareholders.

The 1st 4 questions all deal with Long Lead Time Items and are very specific (and easy). Cut and pasted from email received.


There are 3 key takeaways here for me at least:
* No LLTI orders have been placed at this time
* FID is not a requirement to place an order ... and the equipment is MTO so I expect a cancellation penalty if order cancelled (but for the record DE did not specify and it would likely vary from vendor to vendor).
* ALL EXPENDITURE for the Carbonate plant will likely require SYQ board approval.

The next 4 were all wrt to the overall capital needed for NAL from acquisition through restart upgrades and now this CR (which I put as necessary working capital and cost increases). There was quite a bit of context provided for the questions. I'm not going to repeat all of that. I'm going to continue dialogue as IMO the answers supplied are mostly a deflection, and maybe that's all the company is willing to say, or maybe the question in the context given wasn't well understood

These are the responses.

My immediate response is:

(a) I know all of that already. The question relates to how much funding did SYQ need (and by extension NAL) to acquire the property, do the upgrades and restart the concentrator and get into commercial production.
The answer given makes me think that SYA did not have sufficient funds for their 75% equity contribution. This is a SYA forum so do not raise the PLL question. It is not relevant

(b) Again missing is the context where I referenced both hubs and use of funds. What I was after was essentially has SYA raised enough funds to "fully fund" its 75% equity contribution for SYQ/NAL. The answer given does not address that. I get it enables lots of things. I'm after the answer to just 1 specific thing. Misses the mark.

(c) Well at least that's clear. Perhaps SYA mgmt could now stop saying that as well it has restarted but we're now raising funds for cost increases for other stuff (e.g. tailings dam) in the DFS.

(d) I know the sources of capital and corporate finance. Given the answer, my opinion is the funding needs of SYQ cannot be met from NAL cashflow alone (see last sentence of answer).