Ann: Quarterly Activities Report and Appendix 5B, page-202

“remodelling the plant to produce yellow phosphorus “ (P4)

My take on that is as follows

We all know to make P4 requires a totally different plant to what we’re building. Our plant is a very simple flow sheet of crushing and drying the raw phosphate rock, Phosphate is an input to P4 production, but that’s about as far as any similarities go.

Now Lindsay has his promotional poster displayed that has all of 4 paragraphs to grab the attention of passers by. What better attention grabber is there than EV battery materials?

They have just redesigned the Plant with a simplified flow sheet and the have said they can double the capacity with a very modest outlay. Lindsay has said the plant is rated to 500k tonnes & it just needs some modifications to the front & back end to enable doubling capacity. They have said they are looking at stage 2 for either the S African customer or P4 production.

Now they have a signed Strategic Cooperation Agreement with the syndicate for P4, that includes offtake of 100kt. At this stage they don’t have anything signed (that we know about) with the S African customers. I would suggest this plant “remodelling” is making the front & back end modifications to enable double capacity (370kt). They could hardly put on their poster the mods were for the S African customer as nothing is signed, and its far sexier to show EV battery materials.

This tells me they are very confident of signing an offtake with the S African customer. They are remodelling the plant - as in they are doing it, not considering doing it. If it was for P4 they wouldn’t need these mods to be done for at least a year or 2 while they build a P4 plant. While cash is tight they wouldn’t spend this extra US$1.7 to $3.3m at this point, they’d wait till it was actually needed.

All good news to me - double the revenue!