Ann: June 2022 Quarterly Activities Report, page-61

Conference call notes 28 July 2022

• Ken and Alex did a trip to POSCO a few weeks back, POSCO moving forward.
• "We are aware we are accumulating cash at this point" Dale
• P1000 decision planned Dec Q
• Capital management discussion before end of year.
• Considerations around franking credits next year when we start paying tax.
• Increase costs from also ramp up effect.
• "Move down grade curve sightly - increasing yield product to deliver that additional product for an insatiable market. Happy to answer that call. Increase yeild. In close consultation with customers." Dale
• Mining was about increasing volume.
• Pilgan on plan.
• Ngungaju floatation circuit back open - June in particuarly where flowsheet came to life. "We like what we see" Dale
• 580kt nameplate in September quarter as we move into optimiziation phase across 2 plants.
• Board has said drop the clutch and get on with expansion
• "We are positioned like none other to capitalize on this market" Dale
• From financial perspective, June QTR Transformational for the company - Brian (CFO)
• Brian going over cost/ summaries with what is discussed in the commentary in the thickness of the announcement.
• Challenge on costs are Covid/inflation etc.
• Commentary re: attracting talent/inflation etc in line with industry standard at the moment through cost base.
• Paritcuarly in diesal, reagants, consumables.
• Cost of fuel up 40% QoQ
• "Outlook for near to mid term - remains strong, looking outwards, there is strong demand indicated;
• Remain pressured for tonnes from all corners, from new customers and existing, as well as auctions from BMX platform;
• Feels incredibly positive and well positioned given circumstances we have found ourselves. " - Dale

QnA

• The yield benefit for moving down the grade curve, as it relates to the value, is a function of mineralogy, the broad relationship is as you go down the grade curve you get a corresponding volume upgrade - PLS hasn't been specific in regards to volume/grade/recovery
• Shipping prices have stabilized/come off a little bit but not significantly
• On other costs, feels there's a little more to go here, wouldn't be surprised if we have headwinds here for 3-6 months
• SOMEONE DOING SCHOOL PICK UPS WHILE ON PHONE FROM CANNACORD COME ON BRO
• Stockpiling volume from Ngungaju circuit slightly at the moment but keeping it for core product range.
• In terms of Ngungaju, costs are largely capitalized, the costs incurred now are true operating costs.
• Revenues are not capitalized they are flow-through now.
• Unit cost saving against concenrate of $20-30pt with new crushing facility (If I understood that correctly)
• Price reporting agencies are second to BMX in terms of price reporting given BMX is the most efficient trading marketplace
• "Many different parties from different corners of the globe wanting to stake a claim
• Good luck to all of them as the industry is going through a transformign stage. " Dale
• Question re: long term cost target under $A400t < Dale advising that we are early in journey of mine life, we will have an op team that will chisel down unit cost for many years to come. Many levers around that.
• When can we expect 2 BMX a month - due to quicik Ngungaju, it gives company options - this was not answered.
• Q re: volume from Ngungaju difference between BMX and capacity produced, the difference. We have had elements of catch ups to do with offtakes partner. Lion share for Ngungaju is up for grabs.
• Q's re: share buybacks and dividens - plan is to be in a position to give shareholders more info by end of calendar year in December or January - there are some restrictions right now in how they can actually access the cash that's been generated in a form that allows a dividend or undertake a share buyback (wont say "I told you so") payment of tax, will generate franking credits then give an opportunity to pay franked dividends. Funding of investments in P680 and P1000 and midstream also to be reviewed. Expectation is if not December, January of next year.
• Tantalite no sales - reason is mining ore from southern pit formerly Altura pit, not mining it atm.
• Calix JV demonstration plant location: plan to build it at the mine site.
• Production guidance for coming quarters: is we will look to provide an upside with full year financial in August, as to outlook/challenges, COVID,
• All good re: traditional owners.
• 6MW solar goes a fair long way to offset carbon based power, will need every KW of this.
• The larger energy solution partners wanting district scale are happy to chat