comparisons with sdl, page-4

I'll start by saying I hold SDL.

Resource size - It's too early to tell, but EQX looks as though it has tenaments with the same formation types as SDL, which is high quality hematite caps with Itebirate underneath those caps. EQX's resource is only conceptual at this stage, so you really need to wait until drilling to try and compare resource sizes. It would also be wise to note that the size of SDL's resources at the moment is not a final figure. I wouldn't be at all surprised with both DSO and Itebirate increases as SDL has targets that have yet to be drilled, and many of the targets that have been drilled are open at depth. EQX's conceptual target resource is comparable to SDL's, and the higher end of the conceptual target is higher than SDL's current JORC resource levels.

Infrastructure - SDL needs to build this from scratch, with the CAPEX being placed at around $3.5Bn. EQX has the upper hand in this area with port and rail already existing. What I will say is that the current rail running past EQX tenaments looks to only be able to handle 11mtpa, and there is no word as yet as to what the port allocation will be able to handle. SDL's infrastructure is being planned to be able to easily handle 25mtpa, and will be able to handle 100mtpa quite easily with minimal further CAPEX. What you need to compare here is scale. EQX will have far lower CAPEX costs, but may not be able to move the same amount of iron ore per annum.

As for other comparisons, including OPEX etc, you will need to wait until EQX comes out with a BFS.

I think timing wise, EQX is a little behind SDL as EQX is yet to drill, complete a BFS, commence serious negotiations with the Government regarding a mining permit & convention, commence negotiations with steel mills regarding off-take agreements etc, whereas SDL has done all of this.

In saying that, if I had some spare coin, EQX would be a good home for it. The market cap is still very small, and as the share price rises, further share issues to raise funds for drilling programs and studies will have less of a dilution effect. EQX also may not need to heavily dilute the project when looking at financing the CAPEX, because the CAPEX will be relatively small. This is a good thing.