Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-20

What really concerns me is that they have decided to operate at 2/3 capacity and paused Mg production.
It's only when they have 24hr operation producing Mg ingots at 100% capacity that the revenue will cover cost of operating the demo plant(based on coversation with DP). We will be operating 24hrs(sometime in the future, Oct?) producing MgO(less revenue/ton than Mg) at 2/3 capacity. The revenue form producing MgO at 2/3 capacity will fall far short of coveing the operational cost of the demo plant.

What that means is,until we are producing ingots at 100% capacity. the demo plant will be eroding cash reserves. In addition, we will not see revenue from stage 2 for some years because the postulated start build date of January 2025 will not be met(another failed milestone) and more likely will be January 2026 and won't be operational and earning revenue until latter 2027. Further, the patents expire in 2030.

The upshot is, the Company will not be able to cover its expenses until there is revenue from stage 2, because stage 1(demo) will only at most cover operating expenses for the plant(they will still have to deal with corporate, lease, admin costs). Hence why they are looking at selling off assets(land, plant) and lease-back some of them which then adds further to the recurring expenses because the proceeds from selling assets will go to development of stage 2. That will create a cash-flow problem and inevitably more capital raises(we already have 2.3B shares on issue) diluting our holdings further.

I am expecting a spike in share price when they announce MgO 24hr production and perhaps another spike on ingots production. They will be two opportunities to bail out because there-after it will grind downwards until stage 2 gets to production which will be years away. All that is subject to, the current management and leadership prevailing(which I hope it doesn't).

Yes, I know that I am not paining a rosy picture, but that's how I see it. New management and leadership with operating the demo plant at 100% capacity producing ingots could look much better and optomistic.