vanadium talk, segregated, page-19

Hi Dexter, my opinion is the same as Prisoners: I doubt that the scandium will be included.

The reasons supporting this opinion include Prisoner's observation that there is no take-off that has credibility; until a real take-off in quantity is announced, nobody is going to get much cap credit for scandium. The existing market is infinitesimal (10 tpa) and nobody knows what the prices and rate of uptake will be.

In addition, CLQ has re-confirmed several times that scandium will not be included in the BFS.
There is no reason to suppose they will make such a change at the last minute, unless you think they are scraping to make the numbers look good to juice the SP or get financing.....scenarios which I do not believe are the case.

Furthermore it would make the big investors nervous if all of a sudden they needed to pull in scandium to make the project forecasts attractive. I think one of CLQ's objectives is to prove the project on the merits of nickel and cobalt. They don't want to muck up and confuse the message by dragging in a much more speculative metal like scandium. They will leave it as upside.

While Sunrise capex will be high, they have stated repeatedly that increases in production will more than offset. They have not introduced scandium into the discussion, although I believe platinum will be included. They have also released information that gives confidence that the cap raise will be smooth.

But I do agree, when scandium is taken into proper consideration I think there will be a huge re-evaluation. But it is likely we will have to wait some for it. As I say, I think scandium cap credit will not be given to anybody until a major off-take with a big known counterparty is announced. We will probably have to wait for a while after the BFS and financing. There is going to be enough to chew on when the BFS comes out....for example, I think a nearly concurrent announcement on the Easpring JV is possible.

While timing of a scandium take-off is unpredictable, my opinions are that (1) CLQ is in the best position to do such a deal, (2) that such a deal will occur before CLQ is in production, and that (3) when announced will be for an amount that exceeds current world production.

Speculations, of course but the available evidence supports them. They are not founded on nothing.