Ann: 5EA to Hold Shareholder Call, page-8

This is the interview that JT did with D.A. Davidson (Investment Bank) in Sep 21, 2023
https://wsw.com/webcast/dadco64/feam/1880221

Noted that their head of Ops believed it would be able to achieve (with optimization) 9,000tpa Boric Acid and a few hundred tonnes of Lithium Carbonate.

Now around the 15m mark they begin to address funding the project ... and JT talks about the "big reason strategically for 3 phases was around the ability to finance it" ... now keep in mind, he's saying this on Sep 21 to an Investment Banker (keeping a straight face).

From the Sep Qtrly (filed with SEC Nov 9)

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001888654/000095017023062193/feam-20230930.htm
we have this (and its exactly as it appears in the filing with the red underling)


That's arrogance for you ..."an immaterial alleged breach of the Convertible Note agreement regarding a nonfinancial covenant"
They then go on to highlight a financial covenant (see Note 7) that THEY KNOW THEY WILL BREACH in December,
AND
it is at this point in time that a "recapitalization plan" was being discussed with the lender and "other strategic investors".

JT seems to think the 3 phase plan and DFS was met favorably by the market .. huh???
Hate to see what a chart would look like had it been met "unfavorably" by the market



JT talks to Phase 1 requiring US$373M producing 90,000tpa of Boric Acid and 1,100tpa of Li2CO3 (and ouch has the spot market price of that crashed to earth). And that's a big big part of the problem (I think).

The technical report ... the one that highlighted a capital payback in around 10 YEARS has this pricing





Took a quick look at spot China prices for Boric acid ~US$1,045/t and Li2CO3 (Technical Grade) about US$14,500
CAVEAT ... DON'T KNOW IF CHINA PRICE is APPLICABLE

But at those prices the revenue run rate is 90Kt BA = $94M and 1,00t Li2CO3 = US$16M and Total Revenue = ~US$110M

Now that barely covers Opex.
EBITDA becomes US$11.5M and Margin = 10.5%

Not a project I would be allocating capital too

Be very interesting to here what they say tomorrow