General data, page-952

The Sunrise project has always been a high risk project, but this has nothing to do with the share price. Buying at these prices is much lower risk than buying at 2017/2018 prices.

Mergers and acquisitions are quite possible in the current market. Juniors like us are being starved and might easily take an offer. But, I disagree with your assessment that the share price has been forced down. What is happening to us is happening with the whole Ni/Co sector. The simple fact is that Nickel and Cobalt commodity prices have crashed. This destroys the economics of any project. Indonesian Nickel laterites (which includes a reasonable amount of cobalt) have ramped up too quickly and got ahead of the demand curve. Demand is still rising (as we can see in that Adamas analysis) but supply is rising more rapidly. This situation could change very quickly.

On the plus side, the cure for low prices is low prices. Low prices will kill a lot of projects. We are already seeing it happen with Sumitomo exiting a major Indo project. In my opinion, a lot of these pre DFS junior Ni/Co projects will die. With fewer projects starting, a gap will begin to develop between future supply and future demand. Eventually, we will see the demand curve get ahead of supply and commodity prices will skyrocket again. My guess is 2026 / 2027. When that happens, IMO, Sunrise will be at the front of the pack, which is why I'm holding my shares.

The OEMs have been stringing us along. The drop in commodity prices has given them some peace of mind. But it won't last. They still haven't got their supply stitched up for 2030 and beyond.