Ann: 2020 Annual Report, page-3

Hats off to KB and the team for getting PLS through a rough year, and in fantastic shape both operationally and financially.

My PLS highlights for FY 2020 were:

• Two new off take agreements that saw PLS survive through a dry period - notably with Yibin Tianyi.
• Solid balance sheet having refinanced debt from 12%, down to 5% with no amortisation for 2 years.
• The plant is now at designed recovery!
• Consequently, the cost base is now very low when production is not moderated - fully costed, CIF China, $355 USD/dmt for the Sept. quarter.
• PLS has been drilling for gold on its tenements? - Anyone care to comment on this? All i know is that I think the gold price will remain high for some time given monetary policy settings in developed economies and the likely path ahead for interest rates.
• The company appears to have begun working on its culture and diversity following the unfortunate event on site last year. I believe investing in your people is worthwhile financially as it will attract and, more importantly, retain the best talent.

Looking to the year ahead:

• Guidance for the Dec. quarter is two weeks away and should set the tone for the year ahead. KB stated at D&D: "There has been a material change in the customer base - they are stepping up to the mark, and they are back with a buying mode." He also noted that additional production was set up in the Sept. quarter to meet demand that was coming in the beginning of the Dec. quarter. Will this be another record quarter for sales, or will the Dec. quarter flop like it did last year? "Now we are set to enjoy the fruits of our labour" are some pretty strong words!
• Despite the expected increase in sales, pricing remains weak, so the dream of PLS making a profit large enough to fund stage 2 this year is unlikely to come true. That said, there is a good chance that cash costs will roughly equal customer receipts despite the weak pricing, provided that demand from customers picks up as has been hinted at. This should see PLS through to more profitable times in FY 2022.
• The investment decision on the POSCO JV looks to be unlikely this year as PLS is waiting to hear back from POSCO, who want to keep working on their pilot plant and are undertaking further 'technical studies'. I assume this means POSCO doesn't want to get ahead of the demand and is being cautious before committing to the investment. So I still see FY 2021 as closing out the chapter of stage 1, and FY 2022 as being the beginning of the chapter for stage 2.

Did i miss anything?