General Discussion Topics, page-141506

When the quarterly drops this afternoon or one day next week I hope it addresses the following key risks facing this company with a strategy for the way forward...

ONE - NAL. Address the key issue of carrying on with NAL operations in light of current concentrate pricing and strong possibility of low prices continuing. PLL have offtake agreements and wont want any disruption to production and supply to fulfill those agreements, especially since PLL say they are looking at deferred supply until later this year. JB strongly infers they value that JV with Piedmont and won't want to jeopardise it.

That means hard decisions on NAL may well coming. Crunch time could be approaching. Will it be just continuing to produce at a marginal loss in operations until a CR is forced ? It appears there is no current market appetite for that. Will the Acuity At The Market Facility be called upon? .

In relation to the ATM facility, Accuity capital reports on its website that of the 47 companies in its reported Capital ATM deal history, 41 are for less than 20 mill (size of ATM). Only two are for over $200 mill. LKE ( $250M) and SYA ($200). LKE reckon they can only realistically access about $6 mill. I'd say SYA would be the same. How long will that last is the issue then. Will crunch time just be kicked down the road until product pricing improves? .

TWO - NAL. So hopefully, the financials for this past quarter will show improvement in revenues through sales of concentrate from NAL. That would be good. What if the financials are not that good - e.g. only four quarters of available funding and most of that is through the ATM facility with Accuity? PLL appear in the box seat with NAL operations as they fund only 25 % of the costs and get most of the economic benefit long term for 50% of the output due to their JV agreement with SYA. The issue that I think needs to be addressed is - is that JV agreement a long term proposition? If no, it would appear a revamped agreement would need to be negotiated sooner rather than later.

THREE - GOING FORWARD. I hope the governance issues can be settled quickly so that major financial and strategic issues such as those above and others can be effectively addressed. By that I mean appointing an independent Chairman and comprehensive risk assessments (with actions to address risks) are developed.

Because of the time taken to date, it looks like there is resistance to such an appointment. It's not a good look when two directors are directors of another public company that SYA is in a JV or commercial arrangement. It prompts the question - in who's interests are they working hardest for -- 1MC or SYA or PLL?

An independent chairman is charged with looking out for all (and only) SYA shareholders and place some control over the strategies and actions going forward.

I hope there is resolve on the part of the current MD & BOD address these and other matters. We'll soon get a look at what's been going down.