RISK MANAGEMENT CULTURETNG has never had it,doesn’t know how to...

RISK MANAGEMENT CULTURE

TNG has never had it,doesn’t know how to create it and won’t to steps to address it.

This lack of riskmanagement culture is the single reason the company is in its current position. Accountability can’t be passed to Paul Vogel at NTEPA, the investment committee at NAIF or any of the many service providers like GHD that have been engaged and fired by TNG. That accountability sits with the two men that have been charged as custodians of TNG shareholders capital – the Chairman and his MD. However in a culture that lacks the accountability that risk management establishes, I suspect it’s the MD and his Chairman. That there lies the problem.

The share price mayappreciate which will makes many holders apathetic to this however until aquality Chairman with global operational and delivery experience is engaged,this project will always come with a big discount to its true value because itwill never be run like a tier one project.

It’s also worth testingthe view that financing hurdles for the capex intensive projects is collapsing. That may be the case at the ‘macro’ however I would argue it’s never been more difficult at the ‘micro’. There certainly is a window open for big capex projects at the minute however the messaging I’m getting from people on the ground that have recently got some big stacks of debt funding put away is that window is very narrow and very selective. We all know credit markets can be switched off quickly also. Yes there is a large pool of capital seeking a home in critical minerals however there is an increase in quality and sought after projects seeking funding. Look at TNG for example, we have what seems to be a supportive senior provider in KFW however we’ve never moved through NAIF or EFA DD due to the perceived scale up processing risk of TIVAN and complexity of a pigment plant, in my opinion.

TNG and ESG ??? Right project, right environment, right technology but we don’t even have a sustainability report. The small thing matter and when they don’t exist, you can see why TNG board and exec hit so many hurdles in their attempted delivery of this project. How you do the small things is how you do the big things.