Member Info for DRB83

You keep bringing RS up like he has some leverage over all these companies. He has whatever

Smiller, to avoid just that scenario I am pretty sure the WA government set spending minimums to ensure projects are progressed in a timely manner. I don't think you win licenses from the government and then just let them rot into the ground for years. Ufo would have needed to fund 3 large projects all at the same time. That's a lot of dilution which we didn't have spare capacity for. I am not 100% on the mechanics of the spend requiremnt but sure it exists. Eh would have needed progressing to interest mid tiers imo. The silver price was subsequently $30 when discussions with wce would have started.

You keep bringing RS up like he has some leverage over all these companies. He has whatever

smiller, yes garlick may opt to put his money into wce where he has more control and exposure to eh upside. this is not necessarily a bad thing for ufo given we have an effective 36% share in eh. it shows he has confidence in eh which is good for us.

whether he puts into ufo or not, he his financially motivated to make eh work as is ufo so it carries more weight for me than a ufo director with no skin in the game.

as for erw. you could also argue that they saved us from 100% losing eh. we were getting to the point where we had exhausted all our funding options. we couldn't afford to keep it. they came in and took the risk away.

yes, ufo are losing but have far from lost imo. the upturn has been in motion a few months now. the han**** placing wasn't great timing but it set the floor imo.

Yep, director buys would be a huge relief for most of us i think.

Garlick is putting his money into wce so at a stretch you could say our financial interests are at least indirectly aligned. Murray is still in her probation so let's hope she's here for the long run and puts in over the next few months.

Buff, why not invest in wce?

You could, the future looks bright but it depends on your risk appetite. Wce is higher risk, higher return and will be diluted at least 1 or 2 more times before a DTM. Then they have to find 70% or even 100% of rhe capex. That will likely be more dilution. They carry all the risk of eh and only have silver in play. Then you have the fact as we have already alluded to this morning, ufo is already significantly undervalued compared with wce and have many eggs in many baskets.

I am not saying wce is not a good investment, the opposite in fact. However, given a torrid last 5 years, I am happy for my risk to be reduced whilst still have significant exposure to massive upside.

Each to their own.

Ping. I wish I knew. I can only assume its that ufo has historically not delivered gains for investors so its kind of fallen off the radar. Hence the heavily discounted placings and warrants.

Second, there is the leverage that the cln gives Bennelong. This will maybe dissuade investors but fortunately this leverage is set to dissappear in the next few months.

Thirdly, lack of director buys. We now have 4 key directors. 2 just over 3 months in and 1 brand new. The other Liz Henson does have a few shares. It would be great to see the newbies put their money where their mouth is.

Other than that. All looks good to me. Just need to keep progressing the projects and with the macros where they are, we should keep on a steady trajectory north from here imo.

ping, with the exception of liz henson, the current board is still within its first 4 months. i agree that historically the management has been poor but over the last 12 months they've actually progressed ufo into a strong position. communication may not be great but what do they have to tell us that wce and gre won't be. they are the operators so we'll get everything we need from them. i'm expecting some news soon on han**** in terms of exploration. jv will happen when it happens but for obvious reasons, they won't spill too much of that info until binding agreements are in place.

i am also sure they'll be working on acquiring more assets too so let's see.

strategy is acquire, explore, develop, monetise, repeat.

pj. han**** is best valued on a transaction basis, not a dcf imo.

it has ~8 mt of jorc-style dso iron ore with a granted mining lease, plus ~27 mt of exploration upside. comparable pilbara dso transactions typically clear at ~a$1–2.5/t in-ground for small assets without infrastructure. on that basis, han**** supports a conservative implied value of ~a$7–18m attributable to ufo, so middle ground £6m today imo.

the additional 27 mt is real upside but should be treated as optionality only until converted to jorc; the market won’t pay full value for it yet. true value unlock comes via a jv, offtake or sale, where a partner funds development or drilling and crystallises value. until then, han**** is strategic optionality rather than core nav — which explains why the market currently assigns it little value.

i think a jv on han**** has the potential to push us to >1p so let's see.

i think the implied value used by ufo assumes 100% of wce mcap is based on eh meaning the rest of their projects are worthless. this isn't the case as before the news of the jv with eh landed wce was worth around a$14m. they are now worth a$88m so the implied value of wces 70% of eh coukd be deemed to be a$74m giving ufos 30% being worth a$32m or £16m. our 30.5m shares are worth £4m so total implied value of eh for ufo is £20m allowing for some value being applied to wce other assets.

do the same for gre and the implied value there is £5m.

so just valuing

eh £20m

mm £5m

cash £2m

this theoretically assumes our 30% is the pro rata same value as wce 70% but we know our 30% is free carried so technically our free carry is not included in that ev for either eh or mm.

meaning at a ev of £27m + our free carry + han****, brockman and vivash, we are very undervalued at £15m. should be pushing closer to 0.5 already imo.

Yes bob, that would be the correct advice. You only need to report if an action YOU have taken results in a crossing of a 1% threshold. That's my understanding

Apologies, a glitch with either my phone or lse.

5% doesn't give him any strategic clout at ufo. The loan gives him more than his equity does over certain decisions. So if his power comes from who he knows and the loan then surely he would have sold the bulk of his 458m shares a long time ago when the sp was multiples of what it is now and before getting the boards of ufo, wce, gre and arm to collude together and strip all the value out of ufo and into his other holdings. Which by the way, at the time would have been monumentally smaller than the millions of pounds he had invested in UFO.

I can't make sense of your suggestion of RS pulling the corruption strings with his only leverage coming from the loan which BTW, he doesn't have loans with any of the other companies. Also, the loan is currently £400k but he as agreed for £250k of this to be repaid at the end of this month, leaving him with £150k which will for sure be settled come June if not before. Once that loan is settled, he loses all leverage from it. At that point he is just a 5% shareholder.

I think the connections you make regarding RS are more run of the mill 20-30 directors investors all operating in the same fields in the same areas with the same connections. A tie up with Artemis is not corruption its strategically logical. They have a ore processing machine just down the road that could potentially process our ore saving us millions in capex and loads of time. Ufo know the directors of wce and artemis, great advantage for getting a deal done.

Would you prefer we exclude this option and instead source an alternative 200km away with people we don't know which will likely cost more and take longer, or we could dilute again and buy our own shiny new processing plant worth tens of millions which will probably be cash neutral in 3-4 years. Or, probably more likely, we could go down the royalty route and let wce worry about the processing capex.

Partnering with Artmeis isn't corruption, its good commercial acumen.

Clearly

Been looking into Bennelong investment in UFO over last 12 months and despite 2 placings in h1 his shares remained 458m. His % went from c6.1% to 4.97%. No tr1 as they are not required for dilution events. A conversion happened in December 2025 for 278m shares along side the placing which would have increased holdings to 736m shares being c6.4% of total shares. This would have triggered a tr1 but as we haven't had one, i can only assume Bennelong cashed in somewhere between 158-270m shares to keep him between 4-5%, therefore no tr1 required. So he's prepared to sell ufo shares.

Clearly

Been looking into Bennelong investment in UFO over last 12 months and despite 2 placings in h1 his shares remained 458m. His % went from c6.1% to 4.97%. No tr1 as they are not required for dilution events. A conversion happened in December 2025 for 278m shares along side the placing which would have increased holdings to 736m shares being c6.4% of total shares. This would have triggered a tr1 but as we haven't had one, i can only assume Bennelong cashed in somewhere between 158-270m shares to keep him between 4-5%, therefore no tr1 required. So he's prepared to sell ufo shares.

Clearly

OK, let's say he does carry some influence amongst the various boards and other large shareholders. It still doesn't explain why he would intentionally manipulate the demise of the ufo sp whilst still investing enough to remain our largest shareholder.

It makes more sense to me that he knows the value in ufos assets and knew ufo would lose them if they didn't jv, so he recommended and advised his other holdings to go in for them. Seems logical. The 70/30 split we got for them is pretty std so I am told. Those weren't bad deals they were essential deals and kept us in the game.

Anyhow, ufo are now in their strongest position in years with their strongest balance sheet. 2 of 3 projects fast tracking, funded for 2026 with multiple newsflow just around the corner. I fully expect us to be higher than 0.5 come this time next year.

Had chance to do a little digging and bennelong reported in August that they dropped below the 5% threshold which is a marker for significant investment on the ASX. They have c12.5m shares in WCE. Depending on what level of involvement they had in the placing, their % may now be even lower.

For GRE they have close to 7m shares which was about 6% but once UFO get there 47m shares, Bennelong will again be diluted to near 4%.

According to what i can find, they have a little over 2% in Artemis.

They had c6% in UFO and as we haven't had a tr1 i assume they still have that amount. Up until wce 5 bagging, Bennelongs biggest holding was in ufo so why would they intentionally oversee the demise of their own biggest holding.

The point i am trying to make is that whilst Bennelong evidently have many eggs in their basket they don't own enough to influence the companies as you suggest. This is just good risk diversification management.

Thanks Smiller.

I don't think eh was proven enough for a mid tier to take the gamble and for this reason 90% would have been worse deal than what we got. Ufo needed to progress it further and didn't have the funds. Fenix didn't have the Windfield complexities to negotiate so not really a fair comparison. Unless RS has a significant holding in Wce and gre then I could maybe understand him taking part in UFO placings and converting loans whilst watching his shareholding decimate but from what I can see, he doesn't so it doesn't make sense. On top of that, wce are getting backed by institutional investors so a lot more difficult to manipulate. Whilst I am sure there will be some manipulation happening somewhere, I don't believe RSs power and motive are what you think.

Bennelong have been in every placing for a while now and the sp of each placing over last several years has been lower than the placing before. The last placing broke that trend but not sure other than the loan where Bennelong have made anything on UFO.

So let's assume we didn't jv eh and mm, how do you think it would look now.

Buff/Smiller, if RS is so corrupt, can you explain to the group why he choose to convert the loan at 0.09 when he could have converted at 0.08. See extract below from placing rns.

A simplification of the “Conversion Price” to apply in the event that the outstanding

Funding Facility is converted into Common Shares, such that the conversion price will

be the lowest price offered in an equity fundraising since commencement of the

Funding Facility (with the potential for a lower conversion price linked to VWAP having

previously been included and which could apply had the VWAP of the company’s

shares been lower being removed from the Funding Facility). Notwithstanding this, in

connection with the Conversion Bennelong has agreed to effect that Conversion at the

higher price of the Placing Price (£0.0009 per Common Share).