Ann: Makuutu Rare Earths Project Scoping Study, page-14

My 5 minute footnotes;

LOM EBITDA 1.7Bn AUD.
Post tax FCF 1bn AUD
NPV8 450m.
11Y mine life.

Staged production profile from 2.5mpta ramping to 12.5mtpa.
Only based on 11y production profile from 84Mt. not the 315mT delineated as current.
Capex is 90M USD with further capex for expansions 200M funded through revenue.

AISC $23.7usd/kg with scandium considered
Revenue is 73/USD kg

With 1bn AUD free cash flow post tax over 11year is roughly 100M Profit P/A.
staggered pricing for each year.

Looking to purchase remaining 40% if agreeable.

Going to take a while to do a detailing summary of this, but looks solid as expected.

The IRR and NPV figures were lower than i expected primarily do to a higher AISC than i had forecasted and that the it was a staged production profile thus revenues are lower in Y1 than Y7/9 thus doesn't look as good on paper but reflects reality.

However the profit p/a was around right. 11y mine life obviously had upside with resource expansion. Using the 315mT you can extend mine like 3-4 times which obviously triples LOM revenue/profit etc. I'm told LOM would have been 27years with the full resource input assuming asx thwarted this and potentially explains delays.

SF2TH