Ann: Quarterly Activities Report, page-10

I don't think the convertible notes make a difference to the cost challenges as it was always part of the funding package alongside the bank and NAIF loans. We're funded to complete the existing contractual commitments along with the soon to be awarded package for the jetty causeway. Which potentially leaves the balance of the ponds, crystallisers etc to be funded in the worst case.

I imagine they wanted to see some of their existing contracts get closer to completion to close out and release any contingency associated with those packages while proceeding to a more detailed level of design to reduce tender risk pricing. They'll then have a better handle on the remaining scope and how much more budget (if any) is required.

That said, there has been significant price escalation and labour shortages across the construction sector nation wide that has only worsened since BCI raised the alarm so I'd be very surprised if they only needed a small (or no) extra funding.

Therefore, I think the strategy they're following is to get the improved footprint approved to improve the project economics before tapping markets/lenders for additional cash. With the greater footprint approved, they can also sign offtakes for a larger volume and therefore show the ability to pay of additional lending. I'm hoping it comes in the form of debt rather than further equity.

I was broadly happy with the report, but very disappointed to see the jetty contract held up behind a yet to be awarded causeway package that has the risk of further delaying McConnel Dowell. I don't know why they didn't include the causeway package in the Jetty package, MCD are a well know infrastructure builder including roads, and they then would have been in full control of the risk profile. We better hope they get favourable construction weather from Jan-May....