BMW, page-24

smulv...speaking only of Clean Teq. Apparently it offends to mention other companies.

I could be wrong about this, but I am of the opinion that speed to production is very important in the current circumstances. I believe there is going to be a very severe supply pinch that occurs before a lot of the new projects come on board, and that very unusual profits are possible for those who are actually able to ship large quantities of cobalt sulfate in 2-4 years.

That is the reason I am very focussed on long lead time equipment, such as the autoclaves needed for HPAL. Clean Teq has theirs. Other laterite developers do not. I have also looked at the preparation needed for financing; but that is not as inflexible as the time needed to make custom heavy equipment.

Money can be found in a hurry, but unless and until other developers have ordered the autoclave, and can show me the autoclave or its expected delivery, I consider them to be trailing Clean Teq by the time needed to procure that equipment, from the day they order it.

Another developer may find one lying around, like Clean Teq did; maybe someone can compress the time needed to produce one; but I would not rely on that until it can be demonstrated. It is a hypothetical situation. It could happen; it might not happen.

Long term, of course, it may not matter so much if the second and third and fourth guys come in a little late. But I think in the next five years, it will make a difference; and in seven or ten years, maybe cobalt prices will not be so high.

That is just my opinion; obviously others may see it differently.