Ann: SMS group takes stake in TNG-TNG.AX, page-56

Couple of thoughts....

• Having SMS here at the same time as the Developing NT Conference, if they haven't already, would give them a chance to meet some of the movers & shakers in NT & Aus political/business fields.
• The stake they've taken not being the full amount on offer is a strategic one - ie. No indication they are looking to be a spoiler, take over TNG, squeeze out management etc. The same can't be said for other SI...
• The stake is so small that SP manipulation, if it is occuring, certainly would provide no benefit to SMS
• As previously referenced, one of the criteria for qualifying for the NAIF is that the project is at risk of never happening, or taking a very long time for finance to be raised...
• EIS supplement not submitted - means 100% guarantee that mine can progress is still not in place.
• IMO SMS stake may have opted for a bigger stake had the EIS for the mine been approved - every mining investor will remember what happened with the Adani/Carmichael EIS and be wary as a result. Again IMO.
• Had SMS taken the full placement, would this have altered the NAIF assessment - a partner in technology development, engineering & refinery build with the financial capacity taking about a 5% stake??? Would this change the NAIF assessment as the project is inevitable therefore outside funding not required??? Again IMO.

Lots of things to consider, but what I take out of this placement from SMS is they are 100% committed, are supporting PB/TNG management with the size of the investment not being one which can be read by the market as anything but a vote of confidence and are ticking the boxes for their own investors by not putting up too much of a stake before approvals are through. It is also a stake size that wouldn't undermine TNG's raising of finance with SMS facilitation with the Exim bank or wherever the finance is sought. Finally, it still has the appearance that there is still some question as to whether the project will proceed because SMS have not taken the full $4M - IOW NAIF would still see this project as very progressed, but at risk of never happening or long delays, without infrastructure finance assistance.

Hence my post earlier - Great News!