Ann: FS DEMONSTRATES PROFITABLE MAGNET REO BUSINESS CASE, page-12

Key Metrics Comparison:

1. NPV (Net Present Value):

   • Pre-tax: US$673m (A$1,040m)
   • Post-tax: US$502m (A$776m)
     These values confirm the strong financial returns of the project, as discussed earlier.

2. IRR (Internal Rate of Return):

   • Pre-tax: 52.2%
   • Post-tax: 43.6%
     These IRR figures are exceptional and validate the project's attractiveness to investors, as highlighted in the initial analysis.

3. Capex (Capital Expenditure):

   • US$108.7m (A$168.1m)
     The capital expenditure required is relatively modest compared to the project's long-term revenue and profitability, supporting the conclusion of a short payback period of 2.4 years.

4. Revenue and EBITDA:

   • Net Revenue: US$2,116m (A$3,274m)
   • EBITDA: US$1,782m (A$2,756m)
     These figures align with the original summary and underscore the substantial profit potential of the facility over its 20-year lifespan.

5. OPEX (Operating Expenses):

   • OPEX per kg of REO (excluding magnet costs): US$27.68 (A$42.82)
     This low operating cost reinforces the project's high margins and profitability.

6. Exchange Rates:

   • The exchange rate assumptions (1 GBP = 1.28 US$, 1 A$ = 0.65 US$) are reasonable and consistent with international standards, validating the financial conversions used in both the original and updated analyses.

Additional Insights:

• Pre-Tax vs. Post-Tax Metrics:
  Including pre-tax values (NPV and IRR) in this table provides a clearer picture of the project's profitability before government taxation effects. This does not alter the overall assessment but emphasizes the project's robustness even after tax considerations.

• OPEX Detail:
  The OPEX per kg REO (excluding magnets) provides a more precise understanding of the cost structure, highlighting the project's competitive operational efficiency.