Ann: Investor Conference Call Details, page-57

"ROACE on organic and inorganic projects be a function of cost - ie the cost of developing existing assets are easier to predict so have a higher expectation."

Yes, exactly this - existing assets have more certainty, easier to predict (therefore should be less risky). Hence, this should have a lower hurdle.

Remember the hurdle rate is the threshold for risk, not the actual expected risk of the project.

If it were the expected risk, then yes we want a higher expected risk on existing assets and a lower expected risk on inorganic projects.

But as it's a threshold for risk, it doesn't make sense to invert.

Of the above, I have OEL and STX, and just looking to add a relatively smaller position as not a fan of cash in inflationary environment.

Well at least we can agree on the underlying investment thesis for OEL, and if it turns out successful, this discussion on management will be moot. In the unlikely case that it fails, at least I'll go down knowing I had understood the key risks and where the blame lies.

But like you say, let's see how GC21 and the results play out.