ARL chart, page-1311

How fortuitous- I was just laughing with a mate on the phone last night about how it’s around 20yrs since Eminem popped up!

We project 18% IRR when using the 100yr average price of $7 for nickel & $27 for cobalt. Those are the kind of numbers partners will focus on especially when we remember the 18% return doesn’t rely on any premium for sulfate, which seems to be around $2 by market consensus.

Focusing on unusually high or low numbers is for we retail holders looking for the fastest possible return on our money. As niclou rightly notes- it’s about protecting large market share etc now. Just look at VW- was it US$90 billion they’ve earmarked for securing supply just of cobalt?

Groups like that will be very keen to lock in supply as cheaply as possible at this low in the commodity's market.

Some weaker juniors will either fall away or be snapped up but deposits like ours with management like ours will be the true targets. Why do I say that? Because when we consider that all the juniors need around the same money to get cracking- let’s call it the US$1-1.5 billion hurdle- surely it is better to put that money in to the largest deposit managed by a decent board?

We have one the largest undeveloped resources in the developed world & management has shown that it can handle cash in a way that both advances the project & benefits shareholders- don’t forget that our partner will at least in some sense become a shareholder even if only in the way that they will have money parked here & our performance as a company will impact the return on their investment.

Our prudent cash management plus variety/size of resource shows we aren’t here for a quick cash grab & that we have the goods to back up even the bigger battery/automakers. That gives us a position of strength in any bargain while at the same time our upcoming divestment ( spin off ), of the Godolphin asset shows that we aren’t unrealistic in our thinking.

Very well resourced*, very capable and very reasonable is how I’d sum us up. We could be any one of those things but not the others & we’d be similar to many juniors.

The fact that we are all three really puts us in to a whole other league.

*There really is no other serious competitor to ARL in the developed world when it comes to resource as far as junior developers go & we actually have more minerals than many long established mines.