Ann: Quarterly Cashflow Report - December 2018, page-81

Furnaces, great summary. Would like to just add a few key points.

A) The cashflow report that we have read today is for A40 only. 40F has some cash and cash equivalent in the balance sheet that has not been considered. So, the group probably have more cash than what we have seen.

B) Do we realise that - 1 day after the merger (ie 18-Dec 2018), Alliance announced that Mark Turner was made the Executive Director for Operations (and he was originally designated to be the merged co Chairman, for those who don't know the details). Why the sudden change immediately after the merger? IMO, it was not a sudden decision. Alliance had moved from Development to Production stage and needed someone very experienced to focus full-time on managing the Baldhill operations and MTurner is the ideal choice. But the company was unable to effect that while the merger drags on for 8-9 months.

MTurner is a very experienced COO and you can just look up his profile on google. Do we think it is simply a coincidence that our DMS started to run well since the later part of Dec 2018 (after his appointment as ED for Ops)? I choose to think that having MTurner to focus 100% of his time on Baldhill, he had a good grip of the operations very quickly and had successfully made his presence felt. Hence, I felt very comfortable going forward that the production will consistently running above nameplate.

C) In addition, with MTurner, it really takes the load off Mark Calderwood to focus on the commercial aspects of having renegotiated the Burwill offtake to free up half the output and now negotiating the new offtakes with multiple parties (for spodumene and tantalum)!

Yes, we have been punished for the not-so-great Dec 2018 quarter. I have confidence that this and the many subsequent quarters will be great. All IMO. DYODD.