US production funding / points to note

Looking through the presentations of our US / Canadian teams it seems that all of the presentations have a very similar thread running through them. As I stated in a previous post the development of each runs from production through to feasibility study for when actual resource is on line. The quality of each resource is also high and that is the way all the presentations run.

Explicit targeting of the US market and quality product are the key elements, and it seems they are sharing the Tagline 'a battery technology company (or words to that effect)' (good thing too) to this end it seems the others, particularly, Coulometrics, Elcora and Northern have long standing arrangements for what is a perfect fit for us. It seems from all presentations that we, as the holder of largest potential and quality product have bought into this arrangement by explicitly stating we are paying $80M for the new production facility. We also have very low capex like our other partners, perhaps the lowest in real terms once the full scale of resource across the two Capo Delhado products reaches JORC status.

I did wonder from the addendum to the ASX how we had negligible impact to the bottom line. $80M sure does resonate well down the line. So that is probably why we haven't paid anything substantial to date in this new venture. Adding to our capex and funding probably makes more sense financially for all and ensures, like all the others do, that we bring something substantial to the party other than just graphite.

I am equally intrigued about this industry partner and who it may be. If you look at the Nouveau Monde investor presentation it shows proximity of Quebec district and their mine to the 5 major players in the EV battery market in the US. Two are right on the doorstep. I'm thinking partner maybe one of the potential end clients more and more. The lack of name gives it a little more credence as it doesn't divulge to the market and stops potential with other prospective suppliers for them. It would also make fiscal sense for that party to invest early to get a piece of what looks to be on paper and pending test results a top quality product from the outset, first out the traps as they say.

It also looks as though the market may finally be taking note too.

On the other front I would really like to see what is going to happen with Kroussou. It is difficult to see if there will be any serious exploration work in the near term as all eyes seem to be focussed on the graphite. But the potential over in **on looks exciting too. We have been told that the company is reviewing potential deals for partnering on the project. I would like to see what the company's aims are here I.e. Are we going to be an active participant or is it going the way of the ruby project? Particularly I wouldn't want us to sell ourselves short. Mind you on performance to date you really can't fault the board for much.

I eagerly await the next instalment to get another uplift. V