Fully expect Chemphys to sign the offtake unless there is a...

Fully expect Chemphys to sign the offtake unless there is a fundamental fatal flaw which seems unlikely.

I see the prepayment as a cheap option to take the project off Galan's hands should they fail to deliver under the offtake. Remember Chemphys prepay will be senior secured. Risky position for a 4ktpa operation, doesn't exactly leave a whole lot of wriggle room but it is what it is now.

Re Glencore, it is slightly concerning how this has played out. I don't recall the binding offtake with glencore being conditional on Glencore providing a prepayment, I am pretty sure it was confirmed at some stage that the two were not linked. Hopefully no legal repercussions / penalties come to light.

Would also like an update from the company re expected costs for a lower 4ktpa operation. You don't drop expected output by 20-25% in a 2 pager and assume all is well. It was a small operation to begin with, would be more sensitive to lower output, rough numbers would be helpful to gauge whether this still stacks up.

Aimo