Interview with Justin Warner, page-8

What’s MHP?

Mixed hydroxide precipitate, it’s a nickel-cobalt mix and thatcan be further refined into nickel and cobalt sulphate. And so, increasinglyeven western battery producers are now turning to Indonesia, realising thatthere really is nowhere else where new class one nickel supply is coming on.There are other projects globally, but a lot of those are predicated on anickel price that is inflated. Because of the nature of the industrial park,it’s actually more of an industrial business. We’re not a mining company that’sreliant on a single mine and mines have mine life overhang decision makingthat’s driven by geological complexity and metallurgical conditions, largeamounts of sustaining capex. We don’t have any of those and on top of that, wealso benefit from the Indonesian Government who’s given us a 10-year taxholiday with a further two years at 11 per cent. So, our EBITDA to free cashflow conversion sort of sits around 99 per cent.

These businesses generate a significant amount of cash, but notonly that, the ability to ramp up the nickel production, we’ve gone from an IPOin August of 2018, where we basically produced zero nickel metal production, tothe end of this year, a little over three years, where we’ll be in excess of100,000 tonnes and that puts us in amongst the top ten global nickel producers,above the BHPs, the Sumitomo’s guys like that that have been doing it for 30 or40 years.

That’s as a result and a benefit of being able to have Tsingshanas a partner who can build this new nickel processing capacity with a capitalguarantee so we take no risk with a delivery timeframe guarantee, so we have norisk on that and then with a nameplate guarantee as well. It’s a very uniquebusiness and particularly with exposure to a commodity price.