Ann: Quarterly Cashflow Report-KNL.AX, page-11

I'm to borrow @Heeman 's tinfoil hat here. He has previously speculated about the expansion of production and indeed the possibility of spherical partnership with Sojizt.



Under the heading "Sojitz Offtake Agreement", KNL notes that it will be the sole supplier to Sojizt under the terms of the agreement. It is a possibility that 10,000-14,000tpa mightn't be sufficient to feed the beast.

The company has previous commented that doubling of production could be achieved with a modest $20m increase in capex - thereby keeping the mine within the terms of the mining licence.

KNL notes that the finalisation of the offtake agreement with Sojitz will give access to lithium battery industry and increase the potential for production growth at Epanko.

So, why then does KNL reiterate its initial production targets under the heading Sojizt Offtake Agreement?

Well... Possibly, if Heeman's tinfoil hat is tuned in, then it is because the agreement with Sojizt could reflect a significantly larger stake than just the maximum 14,000 that can be offered via initial production. And, Heeman's tinfoil hat really coming in strong now, the possibility of a spherical integration agreement with Sojizt.

All this tinfoil is giving me a headache but it is worthy of discussion.