Ann: Outstanding Ravensthorpe-Forrestania Study Metrics, page-3

This is a pretty solid outcome.

As you say headline numbers are good. We are sitting roughly where MEK was 6 months ago IMO ($40m MC). They just released their updated FS which included some of there improvements on base case at $600m NPV8, 180% IRR and their capex was circa $60m

At 4,100 our NPV10 is $450m, IRR would be 179% and our capex is $73m.

We are currently trading less than 0.1x spot NAV and we now have a clear pathway to production.

Upside drivers are as follows:

1. As you point out the grade reconcilliation/possible extensions of current drilling have not been factored in. Additional ounces or higher grade is straight to the bottom line



Production is 44% of current resource, could be even less once we finish infill drilling



We are already $500 above base case assumptions and I think most of us here are playing an increasing AUD gold price.


Half our modelled capex is on setting up Kundip, moving infra could save $5m+ maybe?

Paste plant is the big one. Would eliminate 10% dilution loss that we are currently modelling.

So between lower cut-off and past plant we could add 65koz of gold or approx 17% to our mine plan. That is a whole extra year of production and likely another $40-50m+ to NPV.

This all gives us cash to drill more at Kundip, drill Cosmic Boy ground (gold and Nickel often found in the same place) and maybe even develop Trilogy as they mention a high grade subset there might be mineable.

Agree good sir that we should have some upside from here