Ann: Key Engineering Milestone Complete for Technology Demo Plant, page-152

A few random observations

MTM spent from May 2023 till December 2024 trading below the current share price. Over those almost 20 months there would have been a high turn over of the shares with many shareholders showing good profits even at the current SP. Prior to December 2023 these investors were invested for the REE exploration and Gold & Base metals before that. Not surprising many have chosen to cash in because we are now a technology company - not exactly what they signed up for.

For a while now we’ve been “assessing strategic options for this project.” being all their REE tenements etc, except for W Arunta as announced in the last Quarterly. I assume they’re looking to sell them which will bring in some cash & stop the cash drain from tenement costs ($53k last Q).

NDA’s are usually put in place to protect a company’s proprietary information. In our case it’s the other way around, our potential clients have NDAs on us. In other words they don’t want their competitors to know they are thinking of using our technology. They want first mover advantage and would know we are not going to give exclusive rights to any company in one of our “verticals”Although it’s annoying for us shareholders, it’s a great endorsement of our technology by these companies.

Usually when companies talk about the risk of scale-up, they are talking about going from Lab (to possible Demo Plant) to full scale production. Even if they have a demo plant it is usually over 100x scale up from that, and probably 1000x from lab testing - most don’t build a demo plant. In our case, we’ve already done 1000x from Lab testing using our Prototype. The Demo plant is using exactly the same Flashing chamber, the only difference is the multi chamber. The “physics” risk of scale is zero, it’s only an engineering risk to use the multi chamber. We’ve got the best minds doing that & it isn’t exactly rocket science. We also have the people who designed FJH working for us, such as Lucas Eddy (posted on the other thread)

This Demo plant will be commercial for high value metals & is designed to be modular for higher processing rates. We’ll probably go to bigger models, but this is big enough to be commercial for a very big market.

Although the market didn’t think so, IMO the MOU with Vedanta is a first class endorsement of our technology. Stage 1 is just to decontaminate the tailings, although selling the by-product it is certainly not a money spinner. 1 TPD is also not going to do much to reduce Vedanta’s tailings. However prove 1 unit works satisfactorily they can modulise significantly. Eventually as the tech is proven & we build bigger units they will be able to treat all their tailings. Considering the amount of tailings needed to be treated we should have a very healthy licensing income stream. When they go to stage 2 to extract the valuable metals we can negotiate a profit sharing deal.

We now have 2 MOU’s with multi billion dollar companies. Most asx companies get excited about a MOU with a company with a MC > $100m. We have these 2 MOUs without a working Demo Plant, probably more to come before the Demo Plant is operational, once operational & successful I think we’ll be inundated. When the Prototype was completed (and successful at 1000x scale up) we had no plans to build more. Now we have 2 with plans to further expand. IMO if we get some DARPA or other funding we’ll be building another Demo Plant before the 1st is even completed.

When I first invested my first concern was scale-up risk, with MTM’s replies on Investor Web I am completely relaxed about that aspect now.