Ann: Notice of General Meeting/Proxy Form - Offtake Agreement, page-9

FMG was well supported by chinese money in debt loans, and steel mills. in fact FMG was the small investor darling as it didn't get ripped off by the investing houses in Australia...

just like MP was supported by shenghe chinese knowledge in rare earths operations when considering MP history of shutdowns due to not getting opex and throughput under control.

We are selling at singapore market prices.. If the price is too low then regardless whom we sell our ore to we won't be a profitable company. Outside of having a fixed price agreement (so say 65usd and in 5 to 6 year when its 120 usd we miss out)

If we can get financed with almost little debt but give away a non controlling stake then that has less risk than debt / cap raising which means if things go south we go into liquidation as worse case scenario.

i think going with shenghe is our best risk strategy , as they have shown through MP to have the knowledge on processing we need to keep opex in check. There are many prospective rare earth plays around the ones that can survive will be the ones that can manage opex and in our case have more than one revenue stream - phosphate and fluoride added to the mix.


As long as mechanism of the supply and demand on the ore exchange are functioning without manipulation which leads to the next issue - if lynas /MP or any other downstream processor is buying ore at a higher price than listed on the singapore prices then i would be concerned of the supply agreement at a fixed price with a company i hold if that fixed price doesn't reflect the upside to come in ore prices.

If the ores prices don't increase, or we cant run at profit at market prices then as an investor i chose the wrong company to invest in. outside of black swan events , if we come online in 3 years , i would expect ore prices to have risen in line with expectations.

We will never know as of what and why we didn't get western interests in this project - the firm that sold their shares to shenghe whole operandi was to help explorers startup and obtain funding from western countries..... this didn't happen with this project that was at the time the best in the world.

i do know tanzania wants to look at downstream processing in country which runs contradictory to the common view chinese wants to control the rare earth market, of which they have intertwined peak and tanzania together through shenghe....