Ann: Mining Licence Awarded for Mayoko-Moussondji, page-16

re: Ann: Mining Licence Awarded for Mayoko-Mo... Apologies guys.

I meant landed and not FOB. Got my definitions mixed up!

What I meant was while our OPEX is $41 you have to add transport costs in. So Free on Board means the purchaser pays for the transport however this price is deducted from the Benchmark price. So for example if Iron Ore is $110 currently and we can put it on a ship at port for $41 the price received may only be $90 as the buyer is going to deduct the cost of transport which could be around $20. This still leaves a very healthy margin of $50 a tonne.

The 62% benchmark price is the landed price. So if we spent $41 to get the ore out of the ground it may cost us another $20 a tonne to have it transported to China. This takes us to $60. I used $70 to be very conservative and will more than factor in the cost of leasing rolling stock.

Also $20 transport costs is a guesstimate and the actual figure may be higher or lower.

Apologies for the confusion.