Hopefully one short-term initiative PEK can undertake is...

Hopefully one short-term initiative PEK can undertake is right-sizing its work-force (I haven't seen this many managers since BHP) to reflect Shenghe's strategic, technical and operational value that it will be injecting into the MAMBA JVs. This, I believe, will provide an immediate cost-saving benefit to PEK shareholders in lower staff, entertainment and cake costs.

The pricing model and the offtake agreement itself, from my perspective, is an abomination. It is well below the expectations provided by PEK in previous announcements and the updated BFS.

At the very least I was expecting the minimum levels per the updated BFS announcement ie Payability of 60% at 45.0% TREO concentrate what we get is something like Payability 48% at >45% TREO concentrate, and it only gets worse from there as the highest concentrate (>55%) only achieving 53.7% . For years we have been led to believe that the low thorium and uranium levels of Ngualla would provide a healthy premium to the payability of TREO concentrate, when in fact the exact opposite has occurred.

It makes a complete mockery of the updated BFS produced by PEK in October 2022. I am surprised that the Government of Tanzania hasn't hit PEK with penalties for being potentially misleading and deceptive in their dealings with them or in national interests revoked the SML - their 16% free-carried interest in the MAMBAs appears to have lost considerable value in this as well. If somethings as fundamental as the pricing model is so significantly out, imo, it puts into question the integrity of the entire updated BFS.

On a more positive note now that we have JVd with Shenghe, lets hand over the project management to people who know what they are doing and have the professionalism to see it through. Maybe we can clawback some of the considerable revenue lost by way of cost savings achieved from Shenghes' superior management team.



@Jgr64

Agreed. Also lets not forget that MP has;

- A tier-1 management team with exceptional marketing, operational, technical and strategic skill sets and whose team have proven track records
- Situation advantage, located in a tier-1 country with near zero socio, political and economic risks
- First rate infrastructure with seamless, integrated transport access via road, rail and ports; and power and water systems that are the envy of modern cities
- Environmental systems incorporating dry tailings and water recycle platforms second to none
- Highly supportive Federal, State and Local Govt.
- Ready access to a highly skilled and trained local workforce.