Why I have reduced

Position has been reduced over the past week.

I was only able to take a little off the table but will keep a bias to sell until properly adjusted. Not looking to exit 100% of holding.

I have been mostly constructive on the DRX prospects for some time, so I thought it important and fair to outline the reasons behind the change in sentiment:

1. SP has capped at current level. This is purely technical. Clear as day.
2. Project financing is not immanent. A lot of people on HC appear to believe that if you shake a fat NPV report hard enough cash comes out of the pages. It doesn't.
3. Ownership is concentrated (good) but big boys will want better levels to commit future debt/hybrid/equity. Would expect some nudging down the SP. It benefits them.
4. Supply/demand dynamics in the silica market, and corresponding behaviour across the supply chain. Most concerned about the timing impact here. And the longer it drags, the more the SP drifts.

So, given the above, it's risk-off for me and I have scaled back. Need to see better levels before changing sentiment. At the Nov SPP level is probably where I would target, perhaps a little lower given the dilution and delays.

Lastly, I don't think you can compare this with other players. The cap table is too different. This matters more than what's in the ground. You probably don't buy this but hear me out: you are thinking like management when you rely on NPVs or JORC resources (or worse, thinking like geologists). Instead, start thinking what the 20% owners will want and how they will run the playbook on this.