RNU (ASX) Time for a new CEO?

Originally posted by trentino668 ↑

From the CEO:

Thank youfor your email and for sharing your concerns.

Iappreciate that the recent drop in the share price has been unsettling, and Ishare your frustration with the share price performance.

We believewe have amongst the most promising graphite projects globally in terms ofscale, cost competitiveness and jurisdiction. Moreover, we believe theproject’s development-ready status positions us to move quickly into productionto take advantage of potential near-term shortages in graphite supply.

I am alsomindful that the graphite sector (as well as the broader space) has beenexperiencing downward commodity price pressure for the last year. Justover a year ago, when China was importing significant amounts of graphite,prices pushed up to levels that would incentive new production sources likeours. Chinese net imports then faded away, and the graphite pricedeclined. Inexpensive synthetic graphite added to downward prices ongraphite.

As we moveforward into 2024, the factors that impacted graphite last year could quicklychange. Whilst China has its own graphite supply, it will be difficultfor its own supply to meet its forward demand for much longer. Withrespect to synthetic graphite, we similarly do not see the factors leading tolow-priced synthetic as being sustainable, nor replicable outside ofChina. Policy initiatives like the IRA in the USA and the graphiteexport restrictions in China have the potentially to quickly change thegraphite market. Finally, whilst the equity markets have not recentlyshown significant interest projects, users of graphite, in particular, in thelithium-ion battery supply chain, have not shared this sentiment, and thisprovides strong encouragement as we move into this new year.

On thisbasis, we plan to continue our work to start the Siviour mine as soon aspossible, while simultaneously working to move into the downstream phase andexpand growth opportunities. To minimise the construction timetable, wehave already moved ahead with more detailed engineering and procurementactivities and on-site works, and we will continue to work to put the projectinto production as quickly as possible so that we do not miss the marketopportunity to become amongst, if not first, in the inevitable wave of newprojects that will be needed.

Our entireteam in quite busy now, and we expect we will be able to make goodprogress. I understand that you would like to see more updates on thisprogress. With our upcoming work programs on both the preparing the mine andprocessing plant, advancing our downstream operation and organising offtake andfinancing, there are ample opportunities to restore the value that we believeis inherent in both our project and the overall graphite sector.

You alsoraised a concern regarding payments to executive staff. We maintain apolicy of paying portions of remuneration to our executive staff withperformance rights that convert to shares upon achieving specific goals thatare meant to align with positive share price performance. We recentlyadopted a plan that awarded performance rights that are directly linked to ourshare price performance and the performance of a peer group. You may haveseen some announcement regarding this plan and the issuance of performancerights (this new plan partially replaces a previous plan that was based onachieving corporate objectives). The issue of these performance rightsdoes not relate to the issue of shares, only the right to receive shares in thefuture if the performance criteria are met. Our wording in the ASXannouncements may not have made this clear, as we received some queriesregarding these announcements from shareholders that incorrectly interpretedthis to mean shares were being issued. I apologise for any confusion fromthese announcements, which may be the basis on your concern. If youhave other concerns regarding these plans or our policies more generally,please let me know.

I hope thisanswers your questions.

If you have any more queries, please let me know.

Kind regards,

David Christensen
MANAGING DIRECTOR
Level 5, 149 Flinders Street
Adelaide, South Australia 5000
Australia
p. +61 (0)8 8363 6989
m. +61 (0)429 643 770
e. [email protected]
find: www.renascor.com.au
followRenascor_ASX

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Fluff. Start doing what you are paid for.

No.	Vol.	Price($)
8	752298	9.3¢

No.

Vol.

Price($)

752298

9.3¢

Price($)	Vol.	No.
9.4¢	12471	1

Price($)

Vol.

No.

9.4¢

12471

No.	Vol.	Price($)
1	97500	0.096
3	42526	0.095
2	3095	0.094
7	587782	0.093
1	10869	0.092

No.

Vol.

Price($)

97500

0.096

42526

0.095

3095

0.094

587782

0.093

10869

0.092

Price($)	Vol.	No.
0.095	10000	1
0.096	100000	1
0.100	143179	3
0.105	1443770	18
0.110	704247	13

Price($)

Vol.

No.

0.095

10000

0.096

100000

0.100

143179

0.105

1443770

0.110

704247

(20min delay)
Last 9.4¢		Change -0.003(3.09%)		Mkt cap ! $238.8M

Open	High	Low	Value	Volume
9.6¢	9.6¢	9.3¢	$163.6K	1.731M

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