AGM, page-98

Ted
Good catching up with you and good to see that many shareholders were constructive in their criticism and thoughts. I feel for those that have incurred huge losses (as I have) but feel that the AGM would be far more constructive if discussions were civil.

I have not read through the numerous threads on HC but here is my high level take away, in no particular order (as I headed out to golf straight from the AGM) Excuse me if I have repeated some points

- Discussions with SKI are still ongoing but they no longer have exclusivity.
- AUZ decided not to extend the LFA as SKI did not come up with funding levels that met AUZs acceptance
- Discussions ongoing directly with Vehicle manufacturers and financiers including NAIF, QLD Government and Export Credit Agencies
- EV roll out slower than expected that has put battery industry on backfoot in the short term and subsequent Cobalt pricing
- All banks, financial institutions and NAIF are still in the game
- Discussions with previously identified potential off take partners is being pursued. (AUZ naturally cannot state that they were talking to other parties whilst SKI agreement was in place)
- Prescribed Project Status very helpful in expediting process
- Termination of SKI LFA does not have any long term impact on NAIF, but an Offtake agreement is a pre-requirement for any release of funds
- SKI is running behind on its projects and was using The AUZ deal to promote supply agreements
- Flemington drill results due early 2020. Selling down such assets could become part of funding option
- Next Off Take agreement will definitely include a prepayment clause.
Hopeful to make an announcement within next six months and before the next CR is required
- Consolidation is not favoured by BB but would likely be required by financiers
- Cobalt suppliers are fast disappearing as funds have been diverted after price drop from $90K to $30K/ton. Less options for battery manufacturers even SKI
- Battery materials alone for VW will require 5 mines like Sconi. Serious imbalance in demand and supply
- QLD govt is assisting with financing discussions
- BB remained a bit evasive when asked about Matt Canavan recent public comments on Sconi. Good sign if we read between the lines
- Chair gave a high level comment on Marcus Hughes’ departure
- Shareholders were extremely vocal about being mislead and losses they were suffering and hopefully the message sunk in with the board


GLTAH