Ann: Quarterly Activities and Cashflow Reports, page-26

Rykster

These are all good points you make especially when looking at the surface. But Caoimhin also has some good points.

But in all fairness to TM you need to allow for the fact that he has only had control of ZG for 2 months. And what's more we are dealing with a company on the other side of the world based in a non-Western English speaking (main language) country whilst the world is ravaged by Covid and WA in particular where Volt is head officed locked out to all basically. Sure this has been used as an excuse for 18 months but its a fact and is only now starting to ease.

To understand why the plant wasn't maintained and working capital put in one would have to understand the relationships of the original 4 owners.

My research going back to when this purchased was announced to market when I asked the question, "why is this so cheap", I was told that there are 4 shareholders, 3 of them "cant write cheques" and as such can't do any maintenance. To put it in simple terms the large holder who has been described as "well connected, wealthy, strong of character" and "like the Mayor of Kiev" and holds 30% basically bullied the other 3 shareholders who could not raise funds or refused to as they had no control despite being a majority. I have seen this play out in other companies so it does happen.

So when you are a shareholder in a company where you cant get out unless you walk away from your life's work and a public company comes along and offers you a solution, you take it, and the 3 did. So the business was a bargain for a reason. 1. Shareholders desperate to get out and getting on, 2. the business was badly run down and it was either close or sell cheap.

The opportunity as I understand it was presented/introduced to Volt by a US guy from Duke Energy who had 12 years in EV. Along with a fellow Egor Baransky from AETC ( which now happens to be out Investor Relations partner). Another guy Michael Lew had some involvement. Cant remember where he was from.

So 30% guy who has funds and I assume will have to come up with his 30% funding whenever Volt puts money in. He kept his 30% for a reason.

Hopefully this explains why it was bought cheap and rundown and why the opportunity presented.

AND until TM had majority control he couldn't change the Constitution, Corp Governance, ESG etc how could he do this when he didn't own the Company. In any case I take a lot of comfort from the below Statement, "detailed assessment", they wouldn't lend the money if they didn't believe the situation couldn't be turned around.

"SBC Global Investors seeks to make non-control direct investments in growth companies following a detailed assessment of the company’s assets,
management quality, industry structure and operating trends."

ESG is huge now so it was imperative that TM is seen by all stakeholders to be pushing this especially working in the EV space. Mr 30% Guy was obviously not interested and was referred to as "the red flag guy" by stakeholders wanting to transact with ZG. That says everything as to why TM had to hold back funds till all the "the improved environmental management, sustainable operations, programs to minimise carbon footprint, develop stakeholder relationships and social investment" where planned at least and agreed before being implemented. Its like running a football club and you can have the best players (graphite) but if you don't have the club structure in place with the right constitution and the best people to carry it outi its bound to fail.

I now look forward to the "new mining schedule being developed, the maintenance program for mobile plant being started, $$ for operating consumables and contractor services to enable a continuous operation."

Like all I would like to know:

What holding up the Bunyu Funding after being continuously told its close and progressing. Maybe they are waiting to see improvements in ZG??
Who are the CEO and CFO and their credentials and experience.
Sales were $US1.17m in Sept Qtr including quarry rock, $US807/tonne for graphite concentrate. No Unit costs at this stage as would mean nothing until we get consistent production.
Now we have a base to work from that TM can measure against and coming off such a low base I would expect huge improvement this Qtr BUT it all takes time and $$.
This is a "line in the sand moment".

And finally (I was dreading this) @mrwalker I have my bib on, knife and fork in hand, salt, pepper, while my hat is in the slow cooker tenderising, to be eaten as promised. Ha ha we need a laugh every now and again.

Onwards and Upwards to all Shareholders.