Ann: Investor Presentation, page-565

Hi guys, back on the subject...Lindi is currently being developed and entering the construction phase...Once drawdown begins, a Rapid ramp-up of construction is expected...The 12 month grace period kicks in once drawdown begins...Foundations have been prepared, and additional engineers were located on the site last week, according to Mike Elliott's tweet updates...

As most would be aware, some delays have been experienced at the port which was being upgraded...The project owned cranes have been located to site for construction. Have provided the slide below to give a perspective of the ROM wall and plant location.





Lindi differentiated from most projects as management recognised the project's significance and how it could be optimised rather than provide an economy of scale project and compete for lower value products... (Refractory and battery). The high-grade domains from the surface are unique to Lindi and over an area once mined for Gemstones (Artisinal miners)

By optimising the project, the cut off grade was raised to 10% TGC and the reserve stockpile at 6-10% TGC being developed...The reserve stockpile is higher than many projects will mine and conducting feasibility studies on...It's a free dig if the company ever decide to run the material...

I did say management optimised the project. One may ask why not run the material a fair and honest question...Startup CAPEX

Startup CAPEX, if they run lower grade material, more tons are required through the plant for a smaller return...At the back end of the project, the tailings from the plant are also increased.

A quick example for those wanting to learn by using the mining formula of Lindi...

Using a higher cut off optimised the project.....Only a high-grade quality resource can do this...The project is largely differentiated from all peers, underpinned by Expandable markets not reliant on vanilla markets and into production...
The grade is more sensitive than the strip ratio...

Grade TGC (15% )
Strip Ratio 3.3:1
ROM Per Ton unit Cost US$ 3.14
Processing per Ton unit cost US$ 27.56
General formula
m x (r+1)/g + p/g
Where m is mining cost, r is strip ratio, g is grade & p is processing cost.

Quality is a consideration in strip ratio. If a deposit contains low-grade ore quality ore, more of it must be mined to achieve a return on investment. A higher grade deposit can support a higher strip ratio. There is an inverse relationship between deposit grade and strip ratio. The higher the grade universally reduces the CAPEX and Run of mine costs

ROM mining cost per ton unit US$3.14 x (4.4+1)=$16.95 per ton Rom /17.9% = US$94.69
Processing cost per ton unit US$27.56 / 17.9% = US$154
ROM Ming cost US$94.69 + Processing cost US$154 = US$248.69
1000 tons per day x 300 days x 17.9% x 90% recovery = 48,330 tons
Revenue US$73,944,900
Mining and Processing cost ($248.69 x 48,330)= US$12,019,187
EBITDA US$61,925,713

Lindi has a fixed price contract...

Higher cut off increased reserve grade to 17.9% TGC life of mine.

This is what happens when the grade is improved combined with reduced tailings...

Processing cost per ton unit is stagnating to grade...

Processing cost per ton unit US$27.56 / 15 % = US$184
Processing cost per ton unit US$27.56 / 17.9% = US$154
Processing cost per ton unit US$ 27.56 /23% TGC = US$120

$1.48 per P/e of 10 based on 40,000 Tpa and free cash margins of DFS US$1200 per ton product

Regards Croc (Transformational year...)