Ann: Appendix 4D and Financial Report Half Year 31 Dec 2020, page-41

The one thing not mentioned is the price of production. PPK have the cost low so can squeeze if necessary. Additionally, the automation of the machines. Once that is announced, each machine will be more productive which is when you would expect the board to be more comfortable with spending the money to scale out the production. No point spending millions on multiple machines if 1. They all have to be retrofitted and 2. Not required to install so many in each place as they are more productive.

The board choosing to scale as necessary is also wise, as they are not just building 1t capacity and waiting for the market, rather they can react quickly and make sure anything spent will pay itself back and more. Reading between the lines, the Deakin/PPK process seems more flexible in its ability to scale rather than having to build a giant machine. PPK can produce anywhere then, much more sustainable for supply chains. So I see three big ticks.

1. Lowest cost.
2. Capex friendly scale up.
3. Lower supply chain risk.

I take comfort in hearing 1t is the mentioned target, it validates the market size and now we can start to count the zeros from all the tonnes sold, not the grams... Not to mention the end user products. The video mentions the 4IR (4th industrial revolution) a couple of times. With the AMAG investment, the battery and the nanotech, PPK is shaping up to be exactly in this area, with I imagine more investments to come.