Ann: BSOPP Feasibility Study Complete - New 120ktpa Base Case, page-190

23 March "Major Capacity Upgrade For Beyondie SOP Project"

"Final plant design parameters support base case SOP production capacity of at least 100ktpa."

Ok great.

"Further short term and low capital intensity production increase opportunities identified and under review - targeting 120ktpa of SOP."

Low capital intensity? Excellent let's release some unlocked value in this project!

"Kalium Lakes is evaluating additional options for maximising value of its significant resource endowment, including expansion to 400ktpa of SOP and commercially exploiting valuable by-products, including magnesium."

Well thanks for mentioning that but it sounds a little rampy and I'm sure that'll cost a pretty penny...

Then the bomb drops yesterday that the "low capital intensity" expansion from 100kpta to 120ktpa is a meager $40m. The think tank gathered around the table and decided "yes! what a great idea to drop this on the market when we should be weeks away from producing and selling". Also mentions of rising costs, shuffling chairs of working capital and re-negotiating debt with lenders. Hmmmm. Something stinks.

The take away: don't piss on my head and tell me its raining.