Ann: Banco BAI Term Sheet Signed, page-37

I don’t follow PHO, however 20.6% is well below the industry standard of ~ 30%, so would need further processing to bring it up to ~ 30%, usually flotation which is an expensive process both capex + opex.

Minbos only quote 8.4mt @ 29.6% but using a 19% cutoff, previously they quoted 391.3mt @ 9.2% with a 5% cutoff. Note at phase 2 production rates this is still enough for a 23 year mine life & the resource is still open.

So it depends on what cutoff they used & how much higher grade ore they have if they want to avoid the expensive concentration process.

Minbos are also lucky in that they can sell their phosphate as a fertiliser at fertiliser prices, phosphate sells for about US$152/t compared to US$347/t we will sell at, based on current TSP pricing. Then of course not all phosphates are the same, some hard rock (harder to process & use as direct application), some high in heavy metal impurities such as from Morocco.