Estimated Production Numbers, page-14

There is extremely negative sentiment towards E25 at present and that is reflected in the share price. Anyone with a recent purchase and that includes me is in a loss situation. The lack of information makes it hard to invest more.

The sell view
Those in this camp will note that all past quarters have been cash negative. They will extrapolate that the ore operations aren't profitable. They will correctly state that if there is no profit from ore operations, E25 is unlikely to be able to raise the capital to implement its HP ambitions. If ore operations are unprofitable, then the cash raised for expansion will slowly be burnt funding these losses. The potential from expansion plans and HP won't be realised and the share price will keep on falling. Those adopting this view have either sold out, or are selling out driving the price lower.

The will also have doubt about E25 comments. Statements like a second shipment in June when the ship that it appears is intended to do this is still to get through Suez at the start of the last day of the quarter.

The alternative view
Management have made a number of mistakes and over-promised/under-delivered but despite this, there is inherently a profitable ore operation. While some (myself included) expected at least two shipments in the June quarter, this hasn't happened. There should however be some decent sized stockpiles to start the new year with. How big - we don't know but this is price sensitive information so E25 tell us quickly in July. IMO there are two reasons why the March quarter had a f...ing terrible revenue figure. The first is the price was set before the recent substantial increase. The second is that there may be pricing wash-up structure in place. When there was under-delivery in December, this cascaded to a reduced payment in the March quarter not the December quarter. The June quarter with only one shipment of what should be just over a third of a nameplate normal months production.

Expansion
There has been silence from E25 around expansion since the last quarterly. On the sell view, why expand something that is losing money. On the alternative view, there are profits on the ore business and this will increase profits. Some of the comments from the last quarterly included: "Permitting for the expanded case is also in progress." and "A number of exploration RC drillholes were completed during the quarter. Assays are pending and will be reported when they become available, expected in June 2022. In total, 34 holes were drilled for 904m. The drilling was targeting extensions to the known manganese mineralisation as well as sterilising potential infrastructure locations as part of the planning for the proposed expanded production case."

E25 is therefore still thinking about it. Why would you drill areas that you expect not to have ore (Sterilising) if there wasn't still a genuine planning for expansion? It only seems sensible to expand production if it is profitable.