Ann: Pilbara Minerals Equity Capital Raising, page-606

" Cutting down workforce and moderating production will only magnify losses and expedite insolvency point."
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If I use a live example of the past FMG to understand how this management of profit/loss actually work, they took the 'knife' and cut out a huge chunk of the work force while ramping up production in the previous falling IOP . Party of their high cost was the way they went about mining IO from the geology which they altered drastically. This had the effect of drastically lowering their cost of production thereby lowering the unit cost to the point their cash cost was lower then their peers. Here is where we delve into the murky world of cast cost V AISC, something you have a much better understanding. I think somewhere along the way it was their bond debt burden and caveats I presume on a certain level of cash buffer that was the major issue as their profit margin shrink. This was my basic understanding and what save them from total collapsed eventually was the reversal in IOP with all those remedial cost they had addressed.

So your prescription for PLS issues currently is to try and find a way to remediate the recovery %, put on hold the stage 2 ramp up, continue to ramp up production and hope that in time commodity prices can bottom out with the large capital injection by selling equity? Your example of buying out the supplier I think make sense from CATL perspective with their own falling sales.

Thanks again for your great input.

P/s. POSCO is also a foundation holder in RoyHill which was explained as the security of supply foothold which we are currently seeing on the PLS register I presume.