Upcoming Catalysts, page-273

Just looking at the PFS Shines put up, for Magnetic Resources with their Lady Julia mine:

Pre-Tax NPV8 A$925m

Development Capex - A$111.3m (Minyari Scoping study $275m and likely to increase)

Pre Tax IRR - 135%

Annual pre-tax free cash flow – A$1,369

Average Annual production – 104K ozs

Payback period 12 months

Gosh these are wonderful numbers, and granted that our 2022 scoping study should be much better now with more ozs and a higher PoG, will we be anywhere close to a Payback period of 12 months?

Nothing worse than over-ambition, it is the capex required that bothers me, bankers always want a capital raising along with the expensive debt, risky business. Maybe we should take a serious look at just building a 100K oz mill to start with.

A quicker start-up, lower risk, lower capex, lower financing required etc. A scalable design may even be possible so when the initial debt is paid off and the cash starts building up, if we keep finding ozs we have other options.

With probably at least a 15 year mine life, we would get a high p/e ratio.

Not keen at all on trucking our ore 40 kms to a 20+ year old mill either. We would be lying down with a friendly boa constrictor, which might get quite uncomfortable very quickly.