Ann: 20 Mtpa BFS and MOU with Flinders Ports, page-181

This is a nice solid announcment for HIO and it would be a worry if these types of announcements weren't starting to come out given the plan to start shipping in H2 2024. Some observations are as folllows:

* There is a quote on the announcment from HIO MD Bryan Granzien that says “There is also an exciting opportunity for Hawsons to participate in the future growth of the Port as its ‘cornerstone’ customer,” Somehow some people have read that to mean that it's a clue that they expect to grow beyond 20Mt pa. I don't think it should be taken that way at all. It just means that the port once built would like to grow and they will do that with other customers as well as they are not buliding it for the exclusive use of HIO but HIO will be an important customer of course. The quote from CEO of Flinders Port Holdings, Mr Stewart Lammin said: “The MOU with Hawsons is another example of our commitment to facilitating large-scale export projects from South Australia" which makes it pretty clear that their intention is to support multiple customers. This is exactly the sort of project that these companies like.

* The agreement had to be a Memorandum of Understanding (MOU) as there is now way HIO could sign a binding agreement yet without some very loose terms and conditions with a get out clause given the mine isn't certain to go ahead yet and the timing could change.

* 20mt pa seems logical to keep the costs pt down given that iron ore no matter the grade and the premium for that grade is a commodity after all and is likley to go through large price cycles over a 20 year period.

* The 400mt resources and an upgrade. This one makes me a bit nervous. Given they have already been out in the market talking about a 400 Mt resource, if they only confirm 400 Mt in the upcoming announcment then I doubt the market will consider that an upgrade, it may get a blase hohum nothing reaction or be considered a negative. It doesn't need to be a mind blowing massive upgrade but something like 500Mt or above would be great.

A few milestones coming up that could produce good momentum for what should be a great project for Broken Hill and Australia as it's always good so see people getting high paid jobs & some royaly money coming in for taxpayers.