Ann: Spin-out of Ardeas Kalgoorlie-based gold assets into KAL, page-35

Desire for KAL shares may not have kicked in yet and it’s obvious that the upcoming FS is necessary.

Happily we can note that the KAL IPO is being prepared as we speak and that the FS is being pursued when we revisit the quarterly from June.

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I believe also that the data which will feed in to the DFS being brought together in to a cohesive package will very much progress any strategic partnering discussions/negotiations. The very fact that we are openly talking about preparing the data for a DFS is interesting when we note that we’ve always said we won’t do one until we have a partner.

Is there a potential partner or partners telling us that they need to see that ( the data set being brought together ), in order to go in on a DFS with us?

Getting KAL out of the way of course is also necessary, but the prospectus for that will be sufficient clarification of who holds what ( as in what does KAL get and what does ARL retain ), to remove that complication.

We must also remember that there is a chip shortage slowing down the auto industry as a whole at the moment. Once that is alleviated the bottle neck will move & I believe that nickel supply will be the next hurdle those automakers will want to tackle. Never forget- there is always a bottleneck somewhere in a process as not all parts of a supply/manufacturing chain are the same or in complete harmony.

Look at how the nickel metrics are going, even with the automakers somewhat sidelined by that chip issue and of course general consumption being held back by a world still reeling from Covid :
Consistent drawdown over time- covid blip upset the apple cart but as it becomes part of life the drawdown continues.
Resulting in a consistent price rise.

To the SP itself none of us should forget that a lot of people around the world have either lost their job, had their hours reduced or have had direct personal injury from covid. That has reduced overall confidence and people are less likely to invest in tomorrow when they are worried about what it may bring.

The good news on that of course is that we are indeed learning to live with it and that a return of confidence will follow. With that a desire to profit in the future is returning. I for one will most likely be back in Osaka sometime next year and the missus will be back here before/after that. Consumption will return!