Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-40

Hi Sandun... I was specifically admonishing AX-E for not upvoting or acknowledging my effort to reply, not anybody else if I that wasn't clear. I never expect to get likes from negative opinions on threads where people are hurting. I ridiculed AX-E because they were rude and still haven't tagged me in any post, I've seen plenty of the type over 20 years on HC. Franpower I ridiculed because I expect much better than poorly tabled dissembling posts when holders here want and deserve clear and accurate analysis from the second-best analyst on this thread... and I achieved that aim.

Trust me when I say I know Franpower fairly well, and he started our latest niggle by calling out my negative opinions as simply talking down the stock for my own book because i was caught short... so no kit glove treatment for them. I'm happy playing the arrogant antagonist, keeps me sharp, because the day I start posting erroneous waffle I'll get back what I gave twice as hard. I push posters to try harder and they push me to try harder... hopefully threads end up better informed by better debate...

I'm about to have family over working on the house, but I quickly added up the stockpiles because i don;t know where the figure others are quoting came from? I get $28M by deducting all production from sales, excluding para-mag, which I suppose would equal similar figure Franpower came up with, not knowing what the paramag is worth atm? The original plan was clearly to stockpile the para and wait for REE prices to rise then get decent value for it... maybe they need to sell it for the Leuc and accept peanuts for the monazite?


I am really more interested in how sustainable and profitable TB is over next Qtr's and years more so than squeezing out every dollar now to avoid or minimise any possible CR. Stocks, like ACC Rec and Payable, will always exist in the operation, spread-out between piles of Con next to the plant and stocks building at the port until they reach shipping volume. Mag Con is being shipped at 30kt which is about the minimum size you want for a low value con. So the minimum stocks of Mag con on hand between the mine site, trucks and port is probably 50kt given the timing issues of shipping vs booking vs product ready to go etc. Next Qtr the last ship of 30kt Mag-con might be pushed out another week and stocks are actually higher come end Sept?

Say they ship an extra 20kt of Mag-con over Spet Qtr, reduce stocks to 50k, which generates an extra $3.5M cash... doesn;t really move the needle, and still isn;t relevant to the 'steady state' qtrly operations. Franpower is very focussed on short term cashflow which avoids the need for another CR until the operations are rectified and generating free cash qtr on qtr. Fair enough to if you're a large holder.

"I would assume the company will keep making improvements throughout 24, and expect Q3 / Q4 reports to reflect that"... if you didn;t then might as well turn off the plant now and hand over the keys. I'm more interested in where the improvements top out and what the cost implications are. There are some questionable comparisons Bruce is making to demonstrate the over-performance of the ramp up vs expectations or design, but that doesn;t necessarily tell us much about where TB tops out. Destination is more important than the speed to get there... certainly if you are a bond holder.

Good luck