Ann: 1Q FY24 Quarterly Report & Appendix 5B, page-66

That is NOT what he said. I've attached a snippet of the submission...

"Recently, Hancock Prospecting purchased Warrego, following a bid from Beach Energy.
Strike believed, prior to Hancock’s acquisition that Warrego’s commercial strategy was to
sell its gas to large industrial consumers, principally Alcoa. Credit Suisse estimated this
contracted price to be A$4.50/GJ. In its proposed scheme of arrangement with Beach,
Warrego publicly released that its contracts with Alcoa were not necessarily binding.
Analysts believe that Hancock Prospecting has considerable internal gas demand from its
current and planned iron ore operations. Strike’s internal calculations show that a gas
price of A$4.50/GJ (i.e. the estimated price from Alcoa) do not justify an investment cost
of A$438m (net of transaction costs)."

He is basically saying that there is no chance Hancock will be honouring the Alcoa contract - because at the Alcoa contract price of 4.50/GJ, Hancock's purchase of WGO will struggle to make a cent by the time the cost of gas processing plant etc is added to the 2/GJ price they paid for WGO's raw gas reserve. That statement is to reinforce his view that large industrial consumers are building vertically integrated energy businesses with the intention of using the gas internally instead of selling them into the spot market, thus taking further supply off the market.

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