Break even points, page-17

Hi Matt747,

The railway in ROC that would be used to service Mayoko is operated by the State. Your examples of RIO, BHP & FMG are useless as they are privately owned infrastructure.

There would not be commercial disputes between Exxaro and EQX because commercial terms of use contracts are signed by each user with the State owned rail operator. These terms of use conditions are included in the Mining Convention process.

Also, pointing out the questionable returns of the Exxaro project and applying that to EQX's project has some basic flaws.

When calculating ROI, project purchase price and CAPEX are fundamental to the calculation. Exxaro paid over $300m for their project, and this is that main reason the projected ROI was questionable.

As EQX did not pay $300m+ for the project, the NPV and ROI calculations are completely different to Exxaro's. Maybe some reaserch into these issues could be helpful as it seems you don't quite understand the concepts properly.

Good luck!