Ann: Corporate Presentation - December 2018 Quarterly Results, page-27

I think overall this isn't a bad report. Things to consider:

1. We are getting a fraction over A$1,000/t at the moment for product. That makes things easy

2. We produced 22kt of product in December. That is 80% of plant design. 20% missing is due to not quite 100% throughput and recoveries not hitting DFS design yet. In saying that we are 6 months in and over 60% at end of quarter where GXY are still recovering 50% or below after a couple of years.

3. If we just replicate December with no improvements that would be 66kt for the quarter. That is $66m incoming. Even if we get from 80 to 90% of plant capacity that should be 74kt for Q1 which is $74m incoming.

4. The more product we produce the lower costs should be per tonne.

5. We have 12kt of product at site (excluding the offspec stuff from commissioning)

6. We only sold half our tantalite produced for the quarter. Need to know what is happening with the rest. Is GAM taking it and behind on purchases? Will we sell more this quarter which will boost revenue?

So as an overall Q1 we should be looking at $66-74m incoming + tantalite revenue + any stockpiles shipped. So we might earn $70-80m (assuming spod prices remain steady for Q1) with outgoings of $83m expected. However $23m of that is on development. This means that in theory we should be operationally cashflow positive which is a good result. It means we can start pushing cash into building stage 2.

Fairly happy. Spod price is the only real disappointment but that's the commodities game. We are setting a strong foundation for when those start to tick up again in the next cycle. We made the first mover category and we have expansions locked in. We will be one of the ones that last the game and come through strong in the next upswing. The team managed the timing of the company relatively well.