Ann: Half Year Accounts, page-2

Unbelievable. The mere mention of an EIA for a 24 ktpa expansion is absurd. This company requires a spot price of around US$18,000 per tonne just for their current operation to be viable—nearly double the current spot market rate. Their only project hasn't even proven to be functional and is now under care and maintenance. Yet JZ is pushing forward with environmental approval for a 24 ktpa expansion? What an utter waste of time. They lack the funds to fully commission their existing 2 ktpa project, let alone expand to 12 ktpa (which would cost around A$380 million), and a further expansion to 24 ktpa would likely exceed A$750 million in CAPEX (from 2 ktpa). That's about 12 times their current market cap.

This situation is pretty laughable. At least the new environmental approval will provide shareholders with another scapegoat. Holders can go back to blaming the Salta Government for delays, rather than AGY management. And three years from now, when the 24 ktpa approval finally comes through and nothing changes (again), JZ can then announce plans for a 48 ktpa expansion. I mean why not right?

The CAPEX? That will sort itself out somehow…........