Ann: Investor Webinar, page-63

Irrespective of if green incentives are materially taking effect at present, all the financiers I work with are hedging their investments against potential regulatory shifts. SG knows this, and its a large reason why they could secure such strong debt terms.

Anyway, I dont think the ESG motive is enough to fund us just yet, but the project can stand on its own two legs with a -24c per lb nickel cost... The ESG is a differentiating factor against other projects with similar economics, and appeals to some funds (eg government etc) which care about it. On top of this, the gas deal really taking shape into a profit center not a pipe dream, and the economy looking like it might start to improve towards the end of 2023, we are in a good place.

Indonesian nickel really isnt going to sink this ship, we have a different value proposition, and the global nickel market (should) will be more than adequate to support a few players if we hit even half the forecast EV demand provided the yanks and their fed don't send us into a lost decade.


I remain hopefulbecause:
1. ESG is still a consideration even if people arent foregoing economics in favour of it and it is influencing financial decision making even if not driving it.
2. Indonesia physically cant build enough nickel mines to flood the market if demand projections are even half right.
3. we are very close to funding and if we fund it really doesent matter one bit what the end EBITDA is in all honesty, the SP will be heading very far north, even a 200m EBITDA at time of production would make us undervalued at present so long as we can service our debt and have some free cash flow for expansion down the track. Ultimately I dont see this being a real risk as LME stocks of nickel are sinking into hazard territory and our gas business alone should bring in over 100m per year.