PART 12
......... Still at the carbonate plant.....the conversation with Sylvain continues.....
S: The previous owners simply ran out of funds. They couldn't complete the circuit and without it, we cannot produce, not
at an economic commercial scale anyway.
L: The crystalliser I saw for NAL was the Veolia HPD. From my understanding, it was to be used in the waste stream, to make Sodium Sulphate, which would be a value add to the Carbonate.
L: So, do we need 2 crystalizers? One for the carbonate circuit and one for the Sodium sulphate circuits? Could we just use one for now to pump out carbonate?
S: Yes, we could do one, but its cleaner and easier, if we install all the plumbing, wiring and infrastructure at the same time.
( Remember, this is the guy that wants things done once and done right...a philosophy I agree with)
L: Yes we know the previous operator had commissioned this and was in the final stages with Veolia.
S: Yes, we have the engineering, it all designed and drawn up, ready to go.
L: Ready to go?...well just get it..I mean the lead time will be what 12-18 months, so if we start now....
S: Guys I told you, step by step....
L: So to order it right now, what would need to be done.
S: Just fill out the PO (purchase order) The engineering and design for NAL was previously done and is ready to go, we just need the PO.
L: Jesus mate, Bring me the PO mate, Ill sign it!
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We have a bit of a laugh and i remember thinking for farks sake, just get the ball rolling...lets go.....
All the debate over the years, all the conjecture.
Our estimates of 18 months and $100M are close to the mark...it could be done. But that would be half arsed and at odds with how Sylvain operates.
So, with the upgrades and improvements, it would take more time and more money.
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L: Yes, but there was a BIG contingency built into that figure, I reckon you can do it for around 300M..
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He sort of nodded and must have been thinking, fark these guys.... they know too much.
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Now mister teeth wants to cut my carbonate project budget...but I was thinking nothing of the sort.
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I know it can be built at a fraction of greenfield cost, you basically can't go wrong with a little thought and effort.
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And this is the kind of guy you want to give every resource, because you know he will make it happen.
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S: Guys, this is why I am here...
L: What the carbonate plant?
S: Yes, for the carbonate plant. This is MY BABY and I want to build it...I WILL BUILD IT..
I have built mines and processing plants all around the world, Much bigger and much harder than here.
But this, this carbonate plant, THIS IS WHY I AM HERE.....
( In my mind I was thinking thank f... for that...)
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We all looked at each other and thought FARK YEAH, that's what we want to hear.
The golden boy on a mission, on a Carbonate Crusade!
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I remembered doing some calcs a while ago, and very roughly, Of the 300, 225 is Sayona's...of the 225 we will receive a 30% tax credit from 2024....so 157M.... no bloody worries....well make that in FCF is 6 months.... and this is in the best interests of the JV.....lets go...
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L: So, in your mind, it will be built?
S: Guys, this is what I am here for....
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Great, the man that everyone respects in Quebec, that has the ear of Brett, who fought hard to recruit him and gave him carte blanche to get NAL going.....and now is the trusted operator and consul of James, respected by Patrick and Keith (and basically anyone else who visits NAL-think Trudeau, Champagne, Fitzgibbon, bankers instos, finance people, LG, Posco, Ford , Gm ....etc... is 100% focused on making this his pet project and committed to making it a success.
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GOLD! GOLD, I tellsya......
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L: And piedmont?
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He looks over with a smile on his face and a glint in his eye and I remember thinking it's not a matter of if...it's when......
Sample photo
L: You know, if you can make this happen, if you can be the local guy who gets lithium salt and chemicals vertically integrated here at NAL, you will be THE MAN.
You will be one of, if not the ONLY operator with solid chemical experience in North America....and North America is ALL about building refining capacity.
Your standing and your stock will skyrocket.
I mean, you will be it....(Outside of China, and a few other smaller operations, a little in Australia, and a little Korea and Japan....)
S: Yeah.....yeah, I know....
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I said that deliberately, to try and understand his mindset, particularly his ambition...
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And playing to his strengths and appealing to his ambition, we were now able to understand his reasoning for leaving IAMGOLD.
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Sylvain's expertise, drive, and ambition to be in lithium chemicals, are an immensely powerful combination.... You could say, destined to succeed.
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As an investor, this is exactly what you want to hear...in the best interests of Sayona....and in the best interests of Sylvain....they are aligned....one and the same.
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The flipside here is that if they do not support him and stall the carbonate project, his self-confessed baby, he may pick up stumps and leave....
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And if that happens, as I said before, we are screwed....
But he is certainly no quitter and I reckon no matter the obstacle, no matter the hurdles they place in front of him, he will just mow them down and make it happen.
And if we continue along this path. with this guy, NAL will finally realise it's full potential.
(20min delay)