general discussion, page-2039

I don't think we will get a May report - and if we do it will not say much else it will be damaging because they will need to report production figures for MgO, deliveries to Rainstorm, revenue, plant extraction performance etc etc. All evidence points to the plant not operating since that few hunderd Kg's announced on 13th May.

It's clear that they rushed to produce that few hunderd kg of MgO so they could claim the tax rebate.The propectus tells us that the MgO production plant either is not complete(because they have earmarked almost $9M to finish the plant for MgO production), or more likely they have overspent by that amount (noting Section 5 of the propectus pointing to an $11M liability of accrued expenses). Add-in the $4M to get to Mg Ingots production and the Demo plant will have cost around $65M - $70M. It was touted to cost $25-$30M.

This is why the share price is dropping. If you look at the orders it's obvious someone is trying to prop up the share price, else Ord is going to end up with a big bucket of shares they didn't plan on holding.

The long(really long) term outlook I think is positive once the demo plant is completed and if they get cracking on stage 2 with a realistic budget and timeframe.They only have until 2030 on the patents.It will be a miracle if stage 3 is built by then. Management has a lot of work to do to rebuild confidence in the market. Some of those risks listed in sections 1.5 and more detailed in Section 6 of the propspectus are very real.

The more I read the prospectus, the less likely I will take up the offer.