Ann: QUARTERLY ACTIVITIES REPORT - SEPTEMBER 2021, page-31

Esquatcho

I like that you used the low end of the FY22 production guidances and the high end of the AISC ranges for both Tritton and Cracow to estimate the $116M FY22 operating profit. Of course the unknown is copper and gold prices over the next 9 months but few expect copper to drop significantly and most expect copper prices at current levels or better. Gold is less certain - could go either way imo. Not sure how much hedging AIS still have for copper and gold?

For me, the Cracow gold is just a nice bonus while it lasts. I'm very much in AIS for the Cobar copper/gold story. And that story is just starting to ramp up. Over the next 12 to 24 months we will see a major improvement in the mined ore grades from Murrawombie, Budgerygar, Avoca Tank and then Constellation. I expect that late in FY23 we should be mining Cu equiv average ore grades approaching 3% which could see Tritton double their annual cashflow (or much more if the copper price continues to rise).

Now may be a good opportunity to top up after a relatively weak qtr for AIS ...