Ann: Thackaringa Cobalt Project Pre-Feasibility Study, page-49

Found this statement perhaps the most significant:

"Empirical recovery of cobalt in the testwork was 86.8% from ore to cobalt sulphate. This was de-rated to 85.5% to allow for scale-up to commercial production. Optimisation of cobalt recovery, in the BFS, could have a positive impact on project economics. Sensitivity analysis in the PFS, showed that a 1% increase in cobalt recovery, increased post-tax NPV (7.5% WACC) by 3.3%, and a 5% increase in sulphur recovery increased post-tax NPV (7.5% WACC) by 2.4%. Cobalt Blue has an aspirational target of 90% cobalt recovery, with higher cobalt recovery potentially achievable by improved liberation of pyrite in the concentrator circuit by using a finer particle size (a finer particle size resulted in a 2% increase in cobalt recovery in the concentrator circuit, as reported in ASX Announcement 27th Dec 2017) and use of recycle streams throughout the flowsheet to minimise cobalt losses."

So if they hit an aspirational target of 90% recovery of cobalt then IRR increases by 4.5 x 3.3 = 14.85% so up to 35.85% before any mine life increases? Is this correct?