Shareholder Update, page-5

Looks like we may well be in for a bumper new year IMO . The current price of coal would have investors asking what's the chances of thermal coal prices falling further, have far could it fall; its a concern that needs to be aired of course.

Reading the shareholders update, it appears that NLC are looking at Matmor as a bit of a cash cow 'higher value pathway for NLC’s lignite' whilst also looking at Matmor as a catch net, if (and highly unlikely IMO ) the cost of thermal coal was to plummet, and fall below the cost of Coldry.

Matmor uses a slightly modified Coldry plant. Added in are feed paths for iron ore and flux in addition to the lignite, I've asked the company the question before wrt modification of the proposed Coldry demonstration plant and being able to convert over to the Matmor pellet mix; the answer was that the necessary modifications could incorporated without too much cost per drama, either up front or retrospectively down the track, the Coldry plant would be able to produce Coldry and Matmor composite pellets , such that a section of the packed bed drier would be dedicated to feeding a Matmor plant. Conversion to or back to 100% of either ??? Not a problem.

I note that the update States -

'Matmor Pilot development provides a higher value pathway for NLC’s lignite, mitigating the offtake risk implied by the cyclical nature of coal prices by providing the ability to produce both Thermal coal or Matmor feedstock pellets.'

'we’re recasting the Coldry Feasibility Study to cater for a three-party approach incorporating Matmor.

A modified plant IMO would allow for Coldry to be proved up at commercial scale, whilst also providing continuous flow of Matmor pellets for testing and development when required. A three-party approach looks ideal IMO. A $20-25m demo plant between two billion dollar companies might be the go, for a process that could ultimately generate billions IMO.