Yep I asked those questions. Joe’s responses were pretty good if...

Yep I asked those questions. Joe’s responses were pretty good if a bit vague at times.

1) How are you working to prevent cost blowouts on future projects?

Joe referred to generic “systems and processes” to prevent blowouts, but perhaps more concretely, he said that Delorean have increased the quoted margins on future EPC contracts (i.e. Yarra Valley) and BOOM projects (with commercial margins via Palisade) to increase profitability.

2) Why was the closing down of the retail division announced separately from the funding deal?

I didn’t quite understand Joe’s answer, but something to do with timing that was beyond their control. I’m willing to take this explanation at face value, but I’m still annoyed as I bought more at 9.5c before the trading halt was announced. Oh well.

3) Will Delorean need to pay penalties for BLM delays?

I agree with desertredlion’s interpretation that Joe seemed slightly positive that Delorean would avoid or minimise penalty payments. It seems as though there was some misalignment between the feedstock BLM quoted pre-construction, and the feedstock Delorean ultimately ended up having to work with. So perhaps this is how Delorean have some sort of avenue to avoid penalties? I could be wrong though - just my interpretation.

Overall, I thought it was a good presentation, and it seems the management believe that their projects have been significantly derisked with the Palisade funding. As I’ve previously mentioned, I work very close to the SA1 site, so I look forward to seeing construction take place.