Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-12

I like this report. It shows that they are busy making it work.

My notes:
- All the panic on this forum about export finance facility has been disproven. It's been rolled over which is standard practice. Now till March 2024 with more than half of the facility available
- Structure of the report is all over the place with some repetition. Probably due to a change in company secretary. A lawyer wrote it so a bit of mambo jumbo. Wish they had an accountant doing it.
- Receipts - That requires more clarity. Although it may have not been paid in full hence a low number.
- Export finance rate about 12% - gives us an idea of what borrowing interest rates would look like.
- They kept production steady and plan to increase to 30kt (mined ore) per month, without the need of extra capital from outside. This is great.
- Crushing costs to be down by up to 60% from now which should provide extra margin.
- 290kt committed in 2024, which should provide comfort to lenders. Even 50 per tonne margin would be 15 mln which provide interest cover of 3.5-4 times on any debt of 28mln.

Those who complain about payback model appear to not understand it. The payback relates to an investment of 28-40mln in stage 1.5 paid back through ebit margin. Ebit margin on 625kta could be anywhere from 30mln to 130mln. In any scenario it's fantastic.

Looks like there will be another shipping /crushing plant update before AGM, which would have two purposes - increase the share price and please shareholders to vote in favour of certain resolutions.

Once that is set, we will either have debt by end of December or a capital raising in the new year.

I am thinking we'll have progressive debt structure. Certainly appears that they have been successful in positioning the operations for debt.

Some people raise issue with phosphate price coming down to precovid levels. It won't ever. All central banks are letting inflation run ahead of the rates, which achieves steady debasement without recession. No one is going to crush inflation. Once everyone cottons on to it resources will have a rally. Gold is already doing that, rest usually follow.