$a sensitivity, page-5

Kiwi I'm confused.

I understand that there's 104Mt of CID which contains the DSO (57%Fe) and the low grade material (low 50%Fe). And that when it's all averaged out, there's 104Mt of CID at 54.1% Fe. What I don't understand is that when this lower grade ore is beneficiated there's only potentially three years added to the mine life for a cost of $5 a tonne. Perhaps that's the best Nullagine can do without lowering the 57% Fe export figure.

I personally believe that 57% Fe is too high. Post sintering Bonnie fines are 1% higher in CaFe grade than the benchmark Yandi fines. Lowering the grade to 56% Fe seems obvious to me if it mean that an additional three years can be added to the mine life. Bonnie fines would be looking at a deduction in price of around $2t (depending on the actual DMTU) but as mentioned BCI gets an extra three years of production.

Can I therefore assume that if BCI can upgrade the lower grade ore through dry screening and BCI also lowers it grade by 1% that there's potential 5 years to be added to the mine life?

Is a 13 year mine life the best we can do?

As I've previously mentioned, I still don't understand why most if not all of the CID couldn't been converted into BBSO if BCI's talking about lower 50% Fe ore being convertible.

Why can only three years be added to the life of the mine?

It seems we now know the cost of dry screening, which is $5t.