Ann: Pingyao Plant Update, page-3

traydor , muppets were reasonably harmless , not so sure these blokes are .

Back in March 18 they announced they had a turnkey production facility under construction which would produce a range of MgLi alloys . On 20th Sept they told us construction was completed on schedule and production had begun . It wasn't until the release of answers to questions from the ASX that we learned there had been a grand total of 287kgs produced and that was only after ASX asked the question a second time . There was never an announcement production of MgLi had ceased and always direction that Mg production would recommence in March 19 . There has been no notification this did not take place until this ASX forced response . Are these 'unexpected material events' ?
They have stated many times , the cost of environmental works to the plant to enable production of high purity Mg , would be $1.1M . It is confusing as to how much money was taken in during the rights issue ( $6M+ ? ) but if you were going to recommence in March 19 , at the completion of these works , surely you were well down the path to completing these works when , in February , as we now learn , they decided not to 'commence with the suggested changes' .
Why do they have to buy 'calcinated' dolomite .( The correct term is 'calcined' , you would think they would know that at least .) The plant is supposed to have rotary kilns in situ for calcining dolomite , a reasonably ubiquitous Mg ore ? Why would you stop production because your supplier only ran their kilns for 1 month back in March 18 and then stopped ? This was over a year ago , why wouldn't you source material elsewhere ?
Don't worry , as they say in the 1 July announcement , they will "provide an update to the market when appropriate". Really ?
I notice William Bass , who retired from the board on 1st April this year , is providing mentoring services to CMC . He was , as I'm sure you will remember , the Chairman when the above was happening and he also presided over the farcical 'retirement/retraction/removal' of a director ... so I guess we can expect more of the same .