Ann: Change in substantial holding, page-18

AVL and TMT have been unable to get finance, a merger is the sensible solution.
AVL BFS 6/4/22.... underwhelming, an increased CAPEX of us$100m since the PFS.
TMT DFS 21/8/19....surely out of warranty by now.
W :O ratio.....AVL 7.7 :1 TMT 4.3:1..AVL ratio will improve when the MRE is released before the end of the year for the southern blocks.The revised plan was to mine the southern blocks for the first 5 - 6 years.
Process recovery...AVL 76% TMT 77%.....payback time AVL 7.3 years TMT 4.3 years.
AVL moved the refinery to Tenindewa for cheaper gas, local workforce and transport cost of reagents. The transport of the concentrate to the refinery is approx $60m p/a, this was to be offset by selling a Fe/Ti cons for about 70% of 62% IO value. Would this be viable if the 62% IO was at us$80p/t? I am pleased to see the intergration team will again look at further processing the cons to produce a premium high grade IO pellet and 47% rutile.
As for gas.. AVL would truck in gas for the BOO power plant at the mine site, can't find the amount, the refinery would use 2.0 Pj p/a. This would increase for further processing of the cons.
TMT would use about 6.2 Pj p/a, the Northern Goldfields Interconnect tariff is $2.94 Gj = about $18mill p/a.
Then there is the EPA decision how much would this proposed merger delay that. AIMO.