I took the announcement the other day that we’ve moved from a...

I took the announcement the other day that we’ve moved from a entire project ‘fixed price’ EPC to three very separate funding pots, almost what the original DFS was based off. A more cynical shareholder might think CAPEX has significantly blown out however I take it on face value being that SMS as lead EPC just can’t commit to feet on ground in Australia for what they would need to do for an entire project EPC. They will however be a lead contract for the refinery, just not a fixed price .I also take it at face value that SMS would have to significantly increase their contingencies on their ‘fixed price’ given what’s happening in supply chains and cost escalation. I’ve seen it in property construction – builders holding a price for 14 days and seeing 10% increases on day 15 for $10m-20m builds. It’s a real part of life at the moment.

TIVAN Refinery | SMS | KFW

FEED with TNG.SMS still very much committed to delivery of TIVAN and have reacted positively to the suggestion of no EPC due to travel issues but still providing guarantees and EPV for refinery. Perhaps the year is running out to get KFW through their final DD push for funding TIVAN refinery but they are very much the cornerstone debt provider on German engineered and construction.

Beneficiation Plant/Concentrator | Mt. Peake Infrastructure | NAIF

We know the mine site CAPEX from our local engineers delivering that in a separate work flow. There’s been plenty of funding approvals to miners without MMP or EIS from NAIF. There will be pre-conditions and conditions subsequent that TNG will need to meet to access funding. I think this is a good chance this year .I think this really is NAIF’s bread and butter https://naif.gov.au/about-naif-finance/how-we-operate/

Pigment Planet | Acid Regeneration Plant | Oxygen Plant | Chlor-Alkali Plant>>>>>> BOOT operators | JV partners | Pre-production Finance| KMPG

I personally think that some of these assumed BOOTs naturally sit in the BOOT structure and not on balance sheet. Acid regeneration particularly.

There could be something with your Pigment offtake or technology supplier in BOOT or JV. DKSH is a huge beast – when they signed up it made the entire project real.

JV’s and pre-production financing can occur prior to EIS and MMP with certain conditions to accessing. I have seen significant offtake partners take a project stake (say 15%) and commit to 6-9mths of revenue from their offtake as pre-production.

On your second question on Paul’s being on another board, optically it didn’t look great given what happened with NTEPA but if I’m honest with myself I don’t think it has any impact of his ability to run or his output for TNG .It’s a side hustle…..we’ve all got those and keep our day jobs. Short of the long is he’s a NED and I would imagine his 4 hour board meeting once a month and review of material the night before is just a small fraction of the time he probably spent on planes getting to Europe to engage with SMS and DKSH pre COVID. Would I prefer he didn’t – yes because it one less negative for shareholders to be discussing but it is what it is….nothing to see and certainly nothing sinister.

His remuneration is rats and mice to me too.$500k is a good wicket for our market cap but I also think fair value for our market cap is multiples. Action was taken to remove the a number of NEDs that were responsible, amongst other outcomes, for setting up bonus structure and remuneration increases (as their role in nom and rem committees).They are the bokes you should be winding up at but again it’s a pointless discussion as it is what is and it’s within what I’d expect to see in small cap space. His $500k a year doesn't concern me.

What I am disappointed with and would like the company to improve is in the insular nature and micro board TNG are currently operating. This one sits with Grand-Chairman Elkington, who we haven’t heard boo from since he got a new one torn at last years AGM.

As Bruno said the other day, communication is really foggy for the retail punter and needs a lot of work. This needs to improve and the CFO hasn’t taken the bull by the horns on this one.

Anyway - that's me out for another month. Ciao