CLQ...Valuation problems, page-64

Hi McHale, I am not concerned about the pace of either the water division, nor of the one-off cleaning/tailings sector.
Here are my reasons:

1. On the metals side, the company has stated clearly that Sunrise is the overwhelming company priority. Absolutely nothing meaningful on the metals side will be done that takes time and energy away from Sunrise. And I agree with this...although some things may be long-term, Sunrise must be the focus since the future of the company depends in large measure on the timely and successful completion and operation.

2. The company has numerous metal "first project" proofs. And they have some big ones in their back pocket by virtue of the Ivanhoe projects. They have sure orders there in zinc, copper, gold, rhodium, platinum, and palladium...maybe even primary extraction opportunities in some of them. Plus Friedland projects elsewhere. But shagging down one-off tailings projects just cannot be a priority until Sunrise is off the ground.

3. The China deal makes reference to component fabrication and off-site assembly. Way back when, I speculated, even some would say fantasized, about CLQ mass producing components for Clean i-X and automating production of "kits".
This possibility is now revived, Friedlands manufacturing, finance and production muscle are out in the open. This development may have a significant impact on the capex costs of installation and are worth waiting for, both for Sunrise and outside installations.

4. On the water side, it is the nature of the clients that progress will be slow. We are talking about government utilities and bureacracies. Further it appears that the new capabilities from Ionic and also the bio-lens acquisition may have been in CLQ's sights, and their anticipated addition to the water arsenal may have caused short-term delays.

The only things wrong with CLQ are the high Sunrise capex, and the nickel and cobalt spot prices.
I think the fears over the capex are overblown; and they will likely be more than taken care of when a scandium offtake is done. The nickel and cobalt prices....well, one is not a dreamer to expect prices will go up someday.

Looking to add at these levels. My order didn't fill Friday.