Ann: Quarterly Activities Report and Appendix 5B, page-163

After reading Rolley02’s comments and IDC’s tie up with at least one S African phosphate producer, I think our next announcement is going to be an offtake with this S African customer accompanied with the IDC finance approval. They seem to be inter-twined.

That will cause a rerate.

Firstly we’ll be able to go ahead with construction which will give us time to complete the remainder of finance. For all we know there could be a prepayment from this S African customer, if not it will be some sort of non dilutive deal with our strategic customers.

Secondly a S African offtake will mean they have to build to stage 2 specs straight up. Throw the DFS out the window, we’ll be producing up to 370kt from the get go. That will have all sorts of advantages in economies of scale. The DFS had a Yr 1-7 opex of $89.90/t based on 1 train, Yrs 8-15 it was $52.30/t based on 2 trains. So we’ll go straight to the lower opex figure, in fact it should be significantly lower than that because we won’t be operating a 2nd train, just using the new flow sheet producing BPR that only requires the product to do one pass thru the plant instead of several. Lindsay said the existing train 1 is rated to 500kt pa. This will generate significant free cashflow.

Unfortunately the asx won't allow them to publish a new opex based on the new flow sheet unless it is backed by some sort of official study, there's no point on spending money doing that, as they know it'll be less than the DFS.