ABSOLUTELY COMPELLING ECONOMICS, page-601

KPS report estimated Hawsons project's valuation of AUD $9.289bil based on:

- Annual production = 10mtpa
- Resource utilization = 20mtpa
- FX rate AUD/USD: 0.75
- Fe62% price = USD $100/ton
- Product Fe69.9% selling price = AUD $172/ton - AUD $177/ton = USD $129/ton - USD $133/ton
- All-in-cost = USD $63/ton.




Hawsons is now going for 20mtpa (double production), with resource utilization = 400mil tons concentrate (double resource utilization) and my estimate its upcoming resource = 520-550mil tons which i expect to reduce cost/ton of 15% -20% to unit cost (very conservative estimate), with slurry pipeline direct from mine to port to deliver around $8/ton further reduction to All-in-cost per ton.

One can easily see NPV of the project mathematically should increase by a factor of 2.5 which is equivalent to around AUD $23bil.

As Bryan has said to me: "people don't comprehend how big this project is and people don't comprehend why it was awarded MAJOR PROJECT STATUS by both the Australian government and the NSW government and very soon the SA government."