Ann: Chairman's Address to Shareholders, page-12

CD, I get your drift, possible but, in some areas, a little too aspirational for me.

I have a few comments.

Now with the pre-FID funding, this would obviously include working capital to pay staff etc. They would then likely need to consider the possibility of full project funding being delayed, thus delaying FID too.

I think that is not an unreasonable statement to make, and I would hope you are correct, it makes sense. But the fact that they have given it a specific name troubles me. Of course, they need funding to successfully reach FID, but why separately identify it. Are they setting the scene for an enormous pre-FID CR to match the proposed expenditure. I'm baffled.

FID (which is essentially a board meeting) needs to occur to proceed with whatever finance mechanism they opt with, in terms of the $2.6B odd. It’s a formality, but it isn’t a reality until it’s signed off on by all parties at the end of the day.
I would assume that the FID will occur almost immediately after the funding is sorted, pending it’s after the BFS obviously (which makes sense).

Yes, if it is technically and economically feasible, and all other necessary criteria are satisfied, they will surely sigh off on the FID. Yes, with shaky signatures followed by copious amounts of champers.

Now, I’ve guesstimated that around $50-$100M is required for the first funding package in total, but let’s just assume it’s $75M.

One would hope this is done in one fell swoop, to ensure the FEED and ultimately BFS can be completed in a timely manner.

You have selected the mid-point between their proposed limits for first funding package. Fair enough, but on a lighter note, let's hope that it's a fell swoop and not a foul swoop.

- Con notes for the pre-FID funding. It wouldn't surprise me if the SP then went back above 15-20cents.

I'm not a fan or Con Notes, just more debt. But that is just my preference. 15-20 cents? maybe with Notes but I doubt it if it is a share placement.

- Full project funding 100% debt and pay off con notes + the interest Feb/Mar 23. If they keep dilution minimal, this would likely give the SP a good kick north.

This is an interesting point. I question as to whether or not the full project funding can be used to cover pre-FID funding notes.

Now I am going to plant my feet firmly on the ground and address the current quarter (Dec)

The way I see it is:

Available cash so far is approximately $10 million.

The company has approval to issue up to 25% of its total issued capital. i.e. approximately $35 million.

This would appear to be less than that required to cover pre-FID funding. This would require another general meeting to obtain approval to increase this amount. Something to look forward to.

Quarterly expenditure completely unknown, mainly due to not knowing the current state of the project. It may be enormous or quite moderate.

However, ignoring this unknown expense, I would be surprised if $10 million is enough to avoid a CR before the end of the year.

IMO only. J L,


Gonna be a wild few weeks/months though. Now that is not an overstatement.