Ann: March 2023 Quarterly Activities & Cash Flow Report, page-41

Application in February but approval in May. It would be nice, but is it likely? And should DEL know that such a timeframe is extremely optimistic?

DEL's market cap is resembling a reasonable sized car dealership, medical centre or a successful bakery/cafe in your/my hometown. According to LinkedIn there are 21 employees, which would fit with my thinking of DEL's size. Yet there are messages to market of Australia-wide operations and being a national leader in the sector.

I started to write a long post / new thread a few days ago but was clear it would become a massive post. It is still open on my browser tab. I spent a couple of hours looking at the IPO documents and releases to market in 2021 / 22 about SA1 and VIC1. I have a folder full of 20-30 screen shots and copied & pasted documents showing statements from DEL that promised a lot, but amounted to nothing. I will probably discard it.

Clear statements were made that those sites were, at the time, under construction. Then, complete silence for months at a time. Also, that the IPO funds would be used to fund BOOM projects. Neither issue has ever been clarified. It was on to Planum Partners for a lost 12 months "to arrange finance", then Palisade Impact for 6 months "to do their due diligence". Claims were made about when QLD1 would reach FID. Claims about VIC2's progress were made (it's since vanished completely without explanation). I won't go so far as to say these are total lies, but gee wiz, there's a pattern of behaviour here. It is clear when you go through each document consecutively, in one sitting, from the IPO to today that the facts seem to change from announcement to announcement.

In fact, in two years, nothing has been started, let alone completed. Yet the "pipeline" mysteriously grew from $200m to $500m in 2021 in the space of a couple of months. We've never seen anything tangible other than the CAD renders of what a plant would look like. No joint announcements from Brickworks or YVW.

After a few frenetic months of interviews, conference attendances, YouTube updates, post IPO, YVW was announced, Brickworks was announced, and updates on SA1 and VIC1 were announced, DEL then transitioned into the lost 12 months of Planum / silence / occasional vague positive commentary; then 6 months of Palisade / silence / occasional vague positive commentary.

In February 2023 DEL claimed that SA1, VIC1 and YVW would be under construction by 30th June (with the 'all going to plan' disclaimer). I remember the time it took for DEL to announce it was preferred tender for YVW, then took maybe 4 months (I could be wrong) for that to convert into a contract win.

It now seems clear that SA1 and VIC1 won't come within a bull's roar of starting this quarter. That there is an issue with YVW starting, which should have been known in February when the "3 projects in construction by 30th June" promise was made. And that DEL has bitten off more than it can chew for such a small company.

I maintain they should have built 3 or 4 plants locally in WA, stayed in the WEM, then perhaps done a build in Adelaide from a position of strength. I remember an interview or Q&A session in 2021 where either Joe or Hamish said, in response to a question posed, that whilst they were focusing on Australia but wouldn't rule out a build in South East Asia if the terms were right. I'm not kidding. It's probably on their YouTube page at the end of a presentation 18 months ago. Can you imagine it? Bali1.

There seems to delusions of grandeur here, an underestimation of timelines (to be as kind as I can) and a seriouscommunication with market problem. If they know YVW only applied for approval in February, and it takes months for the application to be assessed, they should not be promising "3 sites in construction in Q4", then, further down the track, either not addressing the issue at all, or saying "there have been delays". I don't know how they can keep getting away with it. My issue isn't with understandable delays, it is with the company's messaging and the expectations DEL is setting. If there will almost certainly be X months' delay getting approval for X, just say so.

It is no wonder many past, present and prospective investors can accept the delays, but cannot accept the differences between what is being promised and what is being delivered. I would love to see these sites built, and mean no disrespect to those who continue to hold.