Price and Chart HIO, page-5647

That is if unit cost stays the same.

There is no way in the world that annual production increases from 10mtpa to the massive 20mtpa and unit cost stays the same.

My estimate is the 1st 10mtpa unit cost is the same as in the case of 10mtpa and the 2nd 10mtpa unit cost will be around 50%. That is the core reason behind acquistions and mergers of similar businesses/operations into 1 company with targeted 30%-50% operational effciency.

Here it is not 2 seperate busineses or 2 seperate operations. It is a single operation (same mine pit, same location, same processing plant, same tailing dam, same managemt team,...) the unit cost savings should be much higher.

My rough estimate is for a 2.5 times to 3 times increase in net profit when you go from 10mtpa to 20mtpa.

On top of that, the 20mtpa is big enoigj to justify the invesent in slurry pipeline of 390km. The savings from this logistics option is also massive. My conservative estimate of at least USD $5/ton or USD $100mil = AUD $145mil for 20mtpa operation.

Therefore if you use the $1.22 short term sp target from the IIR research report (based on equity raising price of $1 which i personally think Bryan can easily achieve at higher price given the fund raisings will happen AFTER off-takes, JV deal, mining permit, contract with Flinders Port, contract with 3rd party for slurry pipeline,....), then short term sp target (at construction ready stage after Mid-2023) should be around $3.05 - $3.66.