Ann: Blackstone Completes Ta Khoa Refinery Pre-feasibilty Study, page-38

Great numbers yet conservative at the same time. Also plenty of detail in the fine print and no shying away from any issues. As discussed prior to the release it was too much to expect finalisation of JV partners/offtake contracts/supply contracts in advance of these numbers.

Consider the following extract from the body of the PFS....

"1.2.4 Production Profile

The PFS feed profile treats 400ktpa of nickel concentrates through two Pressure Oxidation (POX) autoclaves (one POX autoclave hereafter referred to as one train). This scenario presented in Table 1.1 and Figure 1.3 is considered to be the most achievable by BSX, and likely the base-case development scenario. BSX also studied the potential of a 800ktpa feed scenario, and pending future partnerships may be pursued at a later date"


I just want to emphasise the above with regard to how conservative the base case 2 train scenario is........elsewhere in the PFS they say how confident they are in gaining 3rd party feed deals such that the probability of later studies increasing the base case from 2 trains to 4 trains is very high IMO.

Why is that important?...well it ONLY doubles the net cash flow and nearly doubles the NPV net of the extra cap-ex required. Just something to keep in mind when considering the upside from the base case scenario.

In terms of price action don't be disappointed.....we've had a 30% jump in MC in advance of the following important de-risking events:-

1. pilot plant product testing
2. confirmation of JV partnerships

We are all keen for the market to value the potential we can see so clearly!.......it will happen just more patience required. Holding for the long term is the only way to maximise returns....just ask Warren B.

Lets hope SW this afternoon can give us further confidence that many tier 1 players are knocking on our door wanting to be involved and how long before partnerships maybe finalised......surely an update on Ecopro at a minimum.......That sort of feedback would see another leg up in the SP .....wouldn't that be nice!

IMO DYOR GLTAH