General Discussion Topics, page-148484

Hi TT. There is a report from SYA last year somewhere, that there were still a couple of years of mining to progress through to clear old stopes. Im sure it may have been mentioned at the AGM as well. When I spoke to Lucas after the AGM, I had two significant points to make to him both from a financial and economical interest. Firstly, I suggested to him that perhaps there is a case to spend some capital and dig and build the roads to access the higher quality ore pockets from another angle, in order to reduce the production and ore sorting costs sooner, rather than, keep incurring the higher cost of driving through the older stopes. Lucas didnt answer the question or justify it there an then, but he nodded and did seem to acknowledge the suggestion. I feel that if we were in those higher grade pockets right now, we could have had a cost base that could maintain a margin even with the declining price again now. Possibly... I need to know more to qualify the theory, but we would have dug into an already small cash on hand bucket, in order to realise profitability sooner. There would have needed to be a feasibility study on this.

the second was the Carbonate refinery. GT was present as well. I suggested that while we believe we dont have the skills within Sayona to run the facility, is this the point where we sell the refinery to a partner and royalty ourselves into the product, while reducing the transport cost and liability. This he responded with great detail, but I wont repeat because I cannot remember the dialogue and i do not want to send a message on his behalf without knowing exactly the message he sent. But his response had merit, even though i didnt agree with the theory behind it. All i do know and do think in this point in time is the biggest failure so far is really where the Canadian government could have played a bigger part in the upbringing of Moblan and NAL due to their own inability to manage their own desire in the battery/ev space.