The AGM Presentation per the slides was good. The financing was the issue people wanted addressed.
With the official agenda satisfied, Sam Riggall said he was a shareholder as well, and he was extremely disappointed with the share price, but the company is focussing on what is under it’s control which is evident in their state of readiness finance aside.
Finance discussions were interesting, they have great confidence in the CLQ resource and say there is insufficient to fund the EV battery needs, Nickle (and Cobalt per slides 8 & 9) . He said there had been a decade of under investment in Nickle mine development, and that there would need to be 5 Sunrise sized projects per year for 10 years to deal with the expected Nickle Needs, as described in theses slides. Unlike lithium which has had significant supply bought to the market, hence its current spot. Nickle lactites take sigificant time. CLQ SP is depressed to similar levels as other battery material miners.
I too have been really disappointed in the SP, but I do get Sam's point about educating potential offtake equity partners about this lack of reserve and the work required to do, to be mine ready. Effectively the industry know the need for Nickle in particular, the question where are they going to get the supply?
This preparation CLQ have done well ticking tasks off, now pretty much shovel ready, it appears. So rather than spot price obsessed, CLQ plan in to be price makers not takers (my phrasing not Sam's) and to find an equity partner who's input costs satisfy CLQs revenue requirenents. They could have signed away offtake agreements many times over their resource, CLQ are looking for the right equity partner. Sam is very confident in the need for Sunrise output.
There was good representation of CLQ management and board, RF apologies... he was in London. Fairly small investor turnout, but educated. Management post meeting were very open and forth coming. Sam particually so making free his time. I was very impressed.
The water and tech area appears to me ready and more contract will come for sure. Each water problem is unique, so the party with the best solution will get the job.
scandium I feel is looking for an industry to embrace it, given no supply constraints in the likes of Sunrise being mined, we will benefit from Scandium upside. Scandium alloy is extremely light weight as compared to Alliy, and steel equivalents.
I went along to get a feel for the management and the state of my investment under their control rather than via CommSec. I came away with confidence in the management and I am optimistic Sunrise will be mined under CLQ control. GLTA
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