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Ann: Results of 2022 Annual General Meeting, page-31

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Whisky49

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26/11/22

06:44

Post #: 65000830
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Originally posted by EV_RE100: ↑

I asked a question during the meeting about the chemical plant feasibility study that the Federal Gov chipped in $6m for that hasn't really been mentioned since. Gareth indicated they were currently doing conversion testing and need to be sure resource size will support a long life asset like a chemical plant. I think he referred to the technical complexity of chemical plant compared to concentrate only. He didn't give much more away in front of the meeting.

Was good to see Gareth's laser focus on getting the company through the transition to producer. I still think there is more to this story than he is letting on as per Stu360s 20 International/Korean VIPs.

I spoke to Gareth and Malcolm after the meeting. Initial just Malcolm and then Gareth approached us and joined our conversation.

You certainly get more out of the side conversations than the formal proceedings. It's guarded, but insightful as you can explore aspects of the project and gauge their response.

My take away is that Gareth is playing down Stage 2 expansion and being vague on timing to put some space between Stephen's vision and his delivery so when it is realised it is on his watch and attributable to his leadership.

Gareth is an ambitious CEO, he's with CXO to prove his stars as a leader in a minor miner that's becoming a mid tier cash cow miner. Very approachable, genuine guy. Like I said came over to join conversation, didn't just stick with the CXO team. Would be a good professional networker.

Malcolm indicated they may shift head office from Adelaide to Perth for talent attraction/retention (pre Gareth joining conversation). For me it was a good sign that they plan to continue to transform board and build out team from explorer to producer.

We spoke about connecting to Darwin's electricity grid, as currently running on diesel genset. Gareth quite right with his indication this was necessary for fast start up.

We touched on original plan to connect to grid as this was a strategic advantage compared to other lithium sites in WA.

My position was connecting to grid would reduce operating costs but wouldn't be cheap however it would get ESG credentials up without further enviro impact on local vegetation as they could do offsite grid scale solar PV or enter into Power Purchase Agreement for grid scale renewables owned by others on less sensitive land.

Once cash flow positive and operations are stable (approx 12 months according to Malcolm) I encouraged them to reduce carbon so they could target Korean, Japanese, European and US supply chain rather than be limited to selling into the Chinese who will be fixing one problem with another problem.

Before Gareth joined our conversation Malcolm agreed JV pathway was more likely for. I referred to the PLS JV where they can get up to 30% and he agreed that was a more plausible outcome due to the technical complexity and cost.

No point going to these meetings if you don't ask questions during meeting or converse with members of the team after formal proceedings.

EV_RE100

Expand

You certainly get more out of the side conversations than the formal proceedings. It's guarded, but insightful as you can explore aspects of the project and gauge their response.

I couldn't agree more and thanks for your take on conversations had, I always enjoy reading reports from Annual meetings , face to face meeting with those running the company is never a bad thing.
My post was more directed at the expectations some have that something material may be disclosed and that simply doesn't happen. You have come away with your own take on things , others may interpret the same conversations differently but when the company updates all shareholders on something new it then becomes a fact.
We're all on the same page and just want the best for our investment..

In the end the general direction the company is heading is not only logical but already articulated by the company itself and given the prices for concentrate they will be proceeding as fast as possible.
There is a chance of a left field announcement at anytime but you will never know in advance.

The very fact that the drilling budget is being doubled next year and money has been raised to assist that and open a new mine tell you that. However they can only proceed with expansion, be it Spod or downstream conversion, if the resources are there, that takes time and will be put to the shareholders when confirmed.

Conversion plants are hugely expensive and as you mentioned will almost certainly require a JV but we were already aware of that as the offtake talks with Tesla involved that very aspect.

As always its a game of patience as the various processes are gone through, new resource numbers are due shortly and look likely to increase LOM on current operations to 20years which IMO is probably the benchmark , any production increase will based on further resource discoveries not existing resources...we will find out for a fact at some point..

Debt free , cashed up and rapidly heading for increase resources and concentrate production at record prices is not a bad place to be...

Cheers Whisky

Originally posted by EV_RE100: ↑

I asked a question during the meeting about the chemical plant feasibility study that the Federal Gov chipped in $6m for that hasn't really been mentioned since. Gareth indicated they were currently doing conversion testing and need to be sure resource size will support a long life asset like a chemical plant. I think he referred to the technical complexity of chemical plant compared to concentrate only. He didn't give much more away in front of the meeting.

Was good to see Gareth's laser focus on getting the company through the transition to producer. I still think there is more to this story than he is letting on as per Stu360s 20 International/Korean VIPs.

I spoke to Gareth and Malcolm after the meeting. Initial just Malcolm and then Gareth approached us and joined our conversation.

You certainly get more out of the side conversations than the formal proceedings. It's guarded, but insightful as you can explore aspects of the project and gauge their response.

My take away is that Gareth is playing down Stage 2 expansion and being vague on timing to put some space between Stephen's vision and his delivery so when it is realised it is on his watch and attributable to his leadership.

Gareth is an ambitious CEO, he's with CXO to prove his stars as a leader in a minor miner that's becoming a mid tier cash cow miner. Very approachable, genuine guy. Like I said came over to join conversation, didn't just stick with the CXO team. Would be a good professional networker.

Malcolm indicated they may shift head office from Adelaide to Perth for talent attraction/retention (pre Gareth joining conversation). For me it was a good sign that they plan to continue to transform board and build out team from explorer to producer.

We spoke about connecting to Darwin's electricity grid, as currently running on diesel genset. Gareth quite right with his indication this was necessary for fast start up.

We touched on original plan to connect to grid as this was a strategic advantage compared to other lithium sites in WA.

My position was connecting to grid would reduce operating costs but wouldn't be cheap however it would get ESG credentials up without further enviro impact on local vegetation as they could do offsite grid scale solar PV or enter into Power Purchase Agreement for grid scale renewables owned by others on less sensitive land.

Once cash flow positive and operations are stable (approx 12 months according to Malcolm) I encouraged them to reduce carbon so they could target Korean, Japanese, European and US supply chain rather than be limited to selling into the Chinese who will be fixing one problem with another problem.

Before Gareth joined our conversation Malcolm agreed JV pathway was more likely for. I referred to the PLS JV where they can get up to 30% and he agreed that was a more plausible outcome due to the technical complexity and cost.

No point going to these meetings if you don't ask questions during meeting or converse with members of the team after formal proceedings.

EV_RE100

Expand

Last edited by Whisky49: 26/11/22

CXO Price at posting: $1.34 Sentiment: Buy Disclosure: Held
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