Hi, Hear what your saying Dossa with regard to this part of the...

Hi,

Hear what your saying Dossa with regard to this part of the statement, "We continue to believe this is a world-class borate-lithium project.” I don't believe the statement is meant to reflect disappointment with regard to the numbers. They have made exactly the same statement since commencement. My impression is they don't overplay things.

I had a cursory look at the figures and was feeling really optimistic. Hope I am not misinterpreting things, but I thought the contained borate (even when taking account that only 86% is fully owned by the company, at this stage) is sufficient for a fairly decent project life - and this is only their maiden resource estimate. Their initial goal is 90,000 tonnes pa, progressing to 270,000 tpa down the track. Total capex estimated at $80m - $90m for the first stage, which is not huge. They have provided opex figures of US$345-$383 per tonne of boric acid produced with estimated prices of between $800 - $1000 per tonne. So even if we use the upper opex estimate and the lower price per tonne, we're talking $37 odd million per annum profit, while only producing 90k tpa. I know that is a really crude estimate of things. The company is talking operating margins of roughly $500 per tonne. Imagine the returns at this rate when producing 270,000 tonnes.

This company seems really focused. They appear to be delivering upon their objectives. Looks like they are still on track to deliver the scoping study this quarter. Aiming for DFS first half of 2018 and to be construction ready second half 2018. Key land use permits and pilot plant permit in place - hopefully no issues with the air and water permits which were granted to previous project owners, but now lapsed.

2018 just around the corner - have every confidence in this team to deliver upon their goals for the coming year. I am hoping for a project with an NPV many multiples of the current mcap. Will see fluctuations in the sp, but good time to get set I think, as seems to be relatively tightly held.

All the best.