Good morning from a cold, wet locked down southern Sydney...

Good morning from a cold, wet locked down southern Sydney beachside location......

You know things are getting bad when you can only play golf in pairs for 9holes......and then it rains as well!

Only joking....there are many doing it tough out there.

I just want to caution us all not to expect a "too the moon" reaction from the PFS.

After 35yrs professionally trading financial markets I know too well that strong expectations most often leads to disappointment.

Undoubtedly it will be good news and an important step along the path to delivery of this amazing project we are all a part of. Of course the theoretical and the practical are two different things and we still have hurdles and de-risking events along the way starting with the pilot plant and metallurgical processing validation and then confirmation of Ni concentrate supply from our UBU in its own PFS due Q4.

Hopefully many questions will be answered in the DBU PFS but it maybe still too early to deliver some of those upstream and downstream tier 1 partnerships as they may also need to look at this PFS and possibly even the UBU PFS later in the year before committing to the business.Hopefully not, but clearly there is a risk of this being the case. Of course, if they aren't delivered now it doesn't mean they won't being happening.

What I would like to emphasise is that BSX has been doing all the right things to build a solid platform for launching this vertically integrated ambitious strategy. They are building important relationships with govt and community, they are focused on ESG delivery especially the zero carbon footprint objective and employed quality people with the necessary skills, they have nurtured relationships with tier 1 players and right from the get go the relationship with Ecopro has been a masterstroke for so many reasons. They have woven themselves into the fabric of a bigger picture govt/country strategy of increasing long term job and wealth creation for the Vietnamese people.

Not too mention we are blessed to be developing this business in the right place(ie proven mineral resource, low cost economy and at the centre of the world's EV battery production) and the right time(the start of the EV revolution and at a time when the Vietnamese govt is strongly supporting foreign investment).

The most bullish technical point is that going into the PFS result we are nearly 40% off our highs and are sitting at a modest MC of only 115m against a base case SS NPV of AUD$1bn.......even if we have to wait a bit longer to find out who our tier 1 partnerships will be IMO there is minimal downside on the SP from current levels.

Why are we down here then given the good news which lay ahead?

This is difficult to answer except that we have hit some good size technical selling along the journey in the last 6mths...technical in the sense that I believe some of our suppliers(and ex directors) who have been paid in shares rather than from our cash coffers have been taking profits which has hurt sentiment and driven some of the short term players from our register ie a domino effect.......what is left are true investors such as you and me who know the best way to maximise our returns is to hold long term whilst monitoring and reviewing along the way to make sure everything is on track. The technical selling should be mostly behind us from hereon.

That is what I've done and I've topped up into this weakness as I couldn't be more confident in the future of BSX.

Have a great weekend everyone....especially those in lockdown.....don't forget "love the one you're with"

DYOR GLTAH