value adding, page-12

Roh

I am a bit confused why CDU is mining and stockpiling ore.

There is no off take agreement in place - nor has the logistical chain being put in place to export the product.

So all CDU are doing are consuming working capital to create a stockpile - why not just leave it in the ground until ready to export to the consumer?

Depending on the processing route - there can be impacts in metallurgical performance (if the sulphide minerals start to oxidise) - which can result in lower recoveries. Note this will depend on multiple factors (minerals present, particle size etc).

There are also rehandle costs/losses to think about. Generally, it is better (cheaper) to move the material as little as possible - so why stockpile?