General Discussions, page-8477

Hi Bomber,

I think binding offtakes are unlikely, With RNU looking at altering its purification process due to its objection to EGR's patent, the initial customer evaluation is likely to be wasted. which puts in significant doubt POSCO signing an SCA agreement with RNU until the patent objection is resolved.

Other examples of offtake agreements is SYR and their agreement with Tesla, the agreement doesn't become binding until after they have built the commercial production facility and provided commercial samples, If you look at another PSG peer, they are developing their project in stages to lower the risk associated with commissioning a new PSG plant, building 5ktpa first, completing the commercial production validation/qualification, once this has been successfully achieved they are expanding their capacity to 20k tpa then developing a second factory.

Why do you think the Clean Energy Finance Corporation will provide additional funds? haven't they offered conditional funding of $185mil?
Are you suggesting that no one else (including shareholders) is able to provide the extra equity RNU might need?
I would have thought CEFC would be investing in the other 2 major projects that are in the 2021 Critical Elements prospectus, MRC's - Munglinup WA and QGL's Uley SA
https://www.austrade.gov.au/ArticleDocuments/5572/australian_critical_minerals_prospectus.pdf.aspx

As you know, the other two graphite projects, RNU and a PSG company, have already received conditional funding from CEFC

BTW, do you know what conditions CEFC placed on RNU's $185mil in funding?

I suspect they will need binding offtakes for its 28ktpa of Spherical Graphite, the 40ktpa of Flake graphite plus the by-product- 15 ktpa to secure the funding, I found it pretty odd that RNU didn't provide the full details to investors.