Windarra Funding, page-13

A couple of questions or points to clarify. Firstly, there is a difference between toll treating and off take agreements. KNO is an off take as it takes the ore and the subsequent concentrate for treatment at the KNS. I don't believe there is an option to toll treat, to take the concentrate back from them and sell to another party (sell to their competition - why would there be such a clause). The off take agreements Mr Bennett is talking about would likely be for concentrate, not toll treating through LJO. Again, the Nickel industry is competitive, why would they help out a competitor and vice versa? Hauling the ore from Fraser's Range to LJO is a long way, back to Norseman and then around 100k of gravel road that shuts when it rains. Would you take this option when fund raising for a high value operation and knowing the banks aversion to risk? You can get by with some interruptions to concentrate haulage but interruptions to ore is a different thing. The SLR DFS has a plant/concentrator factored into it and construction costs are coming down at the moment.
WSA on the other hand are closer and would see this as an opportunity to produce more concentrate and sell it to who ever they chose. I see them as a fit but can they keep the plant fully occupied - I don't think so. Therefore, the cost per tonne will be high, just to cover costs, without big margins for POS.
Again, I may be wrong (and it is in my interest that I am) but I can't see why SLR, WSA and others are going to go out of their way to make the planets align for POS. They have share holders as well who want returns.
Just my thoughts