Ann: June 2024 Quarterly Activities and Cashflow Report, page-103

I spent way too much time last night looking at quarterly reports trying to determine breakeven point. Across last several years production cost, wages, admin, cost per ton and price per ton have massively varied and often there was no break downs to explain why. Add in loans, fund raising etc and only staff at SYR would know. The economies of scale are extreme. The present price and cost per ton is pretty good at moment. . I thought the average price of graphite would have been much higher two years ago. Present costs per ton are the best seen in years at Balama according to quarterly’s. My estimate is that to be profitable at Balama SYR needs to sell at least three times what they did last quarter. That is 30 000kt at these quarters price vs cost. To play it safe maybe 40000kt. In past quarters it was not uncommon for Balama to be producing in high 40000kt range but cost per ton were much higher. SYR have been very successful becoming more efficient. There are many unknowns especially about costs and profit for bringing US on line. Without seeing their books I can’t be much more accurate.