Ann: Scoping Study underway for the Pilbara Iron Ore Project, page-5

Flinders has options

Some weekend reading.

The Scoping Study is, I believe, focussed on road haulage via the Red Dog Highway to Port Hedland targeting a 3 mtpa operation commencing 2025. The main disadvantage of the Port Hedland solution is its distance from PIOP and relatively high port handling fees. So, Port Hedland may be a good start (only choice at this time) but a port nearer to PIOP may be a much better alternative as suitable port(s) become available.

Potential future multiuser ports may include CPW - Cape Preston West, CPE - Cape Preston East (Leichhardt (doing a BFS)), and Balla Balla (BBI or go it alone options).

Potential timeframe

CPW - 2027??

CPE - 2028/9?? Have a good look through this website https://leic.com.au/media/blog-post-title-one-7964l-h7byj-s34xk-hbrgg-t9dx7

BBI - maybe at best 2026? Depends on funding (and new agreements with Flinders)

BB go it alone (or JV) - unknown, not yet on radar.

So Flinders will have a free road (Red Dog H) to Karratha. Then turn right to Port Hedland. If and when a closer port becomes available Flinders can still use the Red Dog H to Karratha and turn left or right (or both).

Given that BBI show in their website that they plan a port to handle IO from the Pilbara, how would they react to Flinders progressing a deal for say a 2-3 year operation to Port Hedland and then another deal to say CPE (or even CPW)? If PIOP IO was to be committed to be supplied to any port other than Balla Balla, then wouldn’t no IO supply be likely to mean no BBIP? It appears to me that, unlike the past, Flinders will have options of supply routes. That, I’d like to think, has got to be good for shareholders. If BBI wanted to guarantee supply of PIOP IO they would have to negotiate a new agreement with Flinders in the full knowledge that Flinders has options. Alternatively TIO could make a TO offer probably by a Scheme of Arrangement. It would have to be good (my thoughts)!

The real beauty of this going forward is our new MD’s skin in the game. A real incentive to get the absolute best deal possible.

In the not too distant future hopefully we’ll see announcements of MOU’s etc. Especially with Port Hedland.

Some risks- Iron Ore price, exchange rates, capital raising/dilution.

Exciting times ahead! I welcome comments, corrections and input to this discussion.

All just my thoughts which may be wrong so do your own research.