Ann: Notice of Initial Substantial Holding for LGI, page-4

I like the way Sol is going with its investment directions, the recent acquisitions of above and venture into Uranium shows that they're not old fashioned and hooked to traditional investments such as coal. They will invest where the money is.

The world currently as it stands has a lot of uncertainty and this naturally comes with investing, However, I see some themes developing in the next few decades which IMO are irreversible and will only get stronger.

1. The increasing dominance and use of AI
2. Aging population
3. steady or increasing of interest rates

Gladly, I see Sol taking part in all 3 themes.

1. A lot of Tech companies are developing their AI, however, the use of AI will use an enormous amount of energy, one ChatGPT search = 10 google search and 1 image generated using ChatGPT = 1 iphone recharge energy consumption. With the increase of cloud computer, AI and Data centres, the energy use will only go up exponentially from here. With the world working towards net zero, Uranium will become more and more important, the forecase demand for Uranium means the current production and also the projected production will not be able to meet future demands, so this can only mean one thing, a huge price increase for Uranium in the years to come. There are already talks of Google/Amazon wanting to build SMRs at their Data centres as a power source. With Nuclear becoming safer as technology advances and demand for energy increases, I see Sol's investment into Nextgen as a very solid move. Especially the Convertible nature of their investment, if the deal goes well, they can take equity stake, if it doesnt go as planed, it will be high yield debt. I like the way they go about this, we don't need to know who will win the AI race, but we know whoever wins will need a lot of Power...we will sell them power and benefit.

2. Aging population - Sol has put in a lot of effort into fund management to cater for the huge pool of retirement money in Australia. It hasn't worked out too well so far, but only time will tell

3. Most people have only experienced falling rates in their investment life, this has propelled asset prices to a high level and we see share market generating double digit returns for the past decades, this has been great for asset holders and it might very well continue for the foreseeable future. However, IMO, we will likely to see the next 40 years quite differently to the past, rate won't fall any further and has a higher likelihood of staying higher for longer, hence, we might not see the average of 10% return in equity P.A like what we see in the past. Sol patt's is venturing into private credit and suddenly, we are able to get 15% return without taking on so much risk. We are able to get equity type of return and far less risk as debt ranks much higher than equity. It's a contractual payment and unlike equity, which is a left over payment. If the company goes bust, you will get paid first and if there is not much left, you get the business and the equity holders gets nothing. Sol is taking on calculated risks to generate equity type of return.

So Sol is positioning themselves well to take advantage of the 3 themes, I wouldn't be surprised to see them venturing into Lithium at the current depressed price. I think it will be a good strategic move and will be rewarded handsomely in the years to come.