Just my account of the AGM...
It was a Small, cordial affair at the AGM, which gave us plenty of opportunity to engage with both Tim and Brett.
The formalities of the meeting over with all resolutions passing comfortably, it was then time for the presentation and the q&a
Engaging with these guys is always the part I enjoy, and I encourage many of you to do the same.
This slide definitely did peak my interest.
A new slide in the presentation, which talked about opex in differing jurisdictions.
Belfast it seems, is quite expensive to operate in.
There was a comparison to operating in. The US, and operating in Brazil.
Both those opeXs came down to about 17/t, from the PFS published figure of just over $27.
The 3 biggest impacts to the opex are labour, power and reagents.
These being significantly lower in North and South America.
Asia cheaper again...
And this is exactly where Brett wants to position the company.
As a multinational player, using our IP and plant design to build in multiple jurisdictions.
The Belfast site also has some issues, with the boys lobbying to have around 10m worth of site works to be paid for by the Belfast harbour committee for our site in the Titanic quarter.
But the enthusiasm, was really about Brazil.
I have mentioned previously it seems we are accelerating this JV.
It seems to be continuing on this trajectory, with, a possible development site chosen by years end....and probably gifted by the Brazilian government.
it seems Brazil's aspirations of producing magnets and e drives, is even greater than i had imagined.
They want to be producing high quality magnets by the end of 2026. using our product.
Brazil /CIT Senai have purchased Lab Fab, who will be tasked with producing these magnets.
We have to procure land, (which is well under way and possible within the next 4 weeks), design and build the plant, and supply these guys to begin production in 2026.
It does not leave a real lot of time, and in my view means some sort of Brazilian government assistance will be very likely.
This project has a very real chance of out accelerating Belfast, which I never imagined.
So we will have 2 projects running concurrently and heading to commercialisation.
Multiple jurisdictions creates a little competitive tension, so hopefully it will accelerate our funding bids on 2 continents.
Unofficially, the Uk APC funding is applied for, the timeline indicated by the minister was Q1 2025...of course the proof is in the pudding and it remains to be seen...
Costs continue to come down.
There is just too much at stake here, and they do have to be as lean as possible
They certainly are serious about cost cutting, with Makuutu being given the bare minimum...
And I think the Melbourne office may be closed, they sort of looked at each other when I mentioned that.
The last point I would like to make id this company has definitely turned a corner in terms of strategy.
We are 100% being positioned to be and industrial chemical business.
We will not be miners.
I don't know how many times Brett said it, but there is no doubt in my mind that is where we are headed. The interactions both Brett and Tim have with institutions interest goes to another level, when they lay out the strategy and tell them our focus in to be a multinational industrial chemical business.
What, you're not going to be a miner...in rare earths....in Africa?
Ahh, no....we are focusing on the recycling, with our own IP, and 100m capex, in an industrial estate, with a $17/t opex we can replicate anywhere...
Gee...tick...tick...tick...tick...tick. ..wow....
Lots of interest, particularly from ESG funds...but its hard to get someone to make the first move. And the government funding may just be the catalyst, for private equity then entering the equation.
So where to for Makuutu? I am late to the party for IXR and have never been a great fan of it. I understand its strengths and weakness, and do see where it can fit in. For that reason it is still part of the plan, and it does give IXR optionality.
Having said that, divestment has entered the equation and is something we may see in the future, its certainly not a retain at all costs mentality.
The guys hung around and engaged with us for a while.
Theres a couple of investors I met at the EGM that were there and we had a good chat and compared notes. Always great to do with the other retail guys and see if we are thinking the same thing. And we are.
We are not going under, and this multi national industrial chemicals company could be massive. Its probably where this recycling tech has been headed all along.
Cost cutting, improvements in opex, low capex and very strong ESG credentials will see this get through to commercialisation.
And as I have said before, we just need the money to execute, which seems now closer than ever before...
Good luck everyone...
(20min delay)