Hi crone5, thanks for your questions.Q1: Once the facility is...

Hi crone5, thanks for your questions.

Q1: Once the facility is fully operational, what sort of continuous operating cycle is to be expected to achieve the capacity of 25,000 tonnes per annum of coldry product? ie. 5 Day x 8 HR continuous operation?
A1: The design basis is 24x7 operations, with allowances for both planned maintenance & unplanned interruptions throughout a year.

Q2: With regard to product mix / revenues. Prior approximate forecasts ( June ) were:

5,000 tonnes - Coldry solid fuel sales to steam & boiler systems - $1 Million Revenue10,000 tonnes - Char product - $4 to 5 Million Revenue10,000 tonnes - Syngas - off take credit.
Has there been any changes / fine-tuning to the mix?
A2: No. A clarification though on the term ‘off-take credit’; the syngas will offset the purchase of external energy, rather than being sold to other consumers. There may be a future opportunity for steam sales to other businesses within the precinct.

Q3: With regards to the project budget? In June, the budget was estimated to be approximately 5.5 Million, delivering 2.4 Million in R&D returns @ 43.5% if I'm not mistaken. Now it's reported to come in at 6.5 Million, delivering 2.8 Million @ 43.5%. What items have contributed to an increase of 1 Million to the project budget? And is there any risk of further budget creep?
A3: We provided an update on the impact of COVID-19 on the project back on 18 June (link).

“Overall, the budget for the full implementation of the upgrade project has increased by ~$1.2m”

The change is largely driven by timeline slippage, which is largely driven by COVID impacts on supply chain and resource availability. We will continue to monitor the impact of COVID-19 and other factors and provide revised guidance as required.

Q4: With regards to the new equipment ( mixer, mill & extruder ) arriving on-site, are you able to provide some detail around these. Are these pieces off the shelf items, or specifically designed for the Coldry facility? Will component supplier Reps be on the ground in support of component testing and validation prior to final installation?
A4: The mixer, mill and extruder are considered ‘off the shelf’ equipment and used extensively in materials processing, though are quite specialised in their fabrication, assembly and use. However, there is a range of modifications required to enable their effective, combined application to lignite, and specific tuning when part of an integrated Coldry process train. Additionally, the equipment is operated in a vastly different manner vs. its typical application in other industries. We have both internal and external expertise supporting the testing, installation and commissioning of each component and in the context of the end-to-end process.