Ann: Alkane Investor Webinar, page-34

Just a very quick and very rough figure of potential profitability of Boda based on Cadia 6 months profit to Dec 22 all dollars are USA. That is, is it economically viable to mine NMPP. One way to look at this is a very rough sense check of Boda's economic viability (and as I note below the comparison does not stack up).

Cadia stats were:
- production Au 311koz, 51T Cu plus moly and Ag
- revenue - $916m
- EBITDA - $627m
- EBIT - $500m
- ASIC - $67 per oz (margin is $1,629 per oz)

Cadia's grade AuEq is about 50% higher than Boda i.e. Boda is 2/3 of Cadia grade. Let's assume NMPP has the same costs as Cadia (per size of the resource which is a brave assumption). Taking a third off revenue we end up with revenue of $610m. That would reduce EBITDA to $321m and EBIT to $194m for a NMPP equivalent.

While they are lots of problems with this analysis, other than the roughness of the analysis (eg costs are much higher now), the really BIG problem with it is that NMPP resource size is way below Cadia - the size of Cadia introduces major efficiencies like term of mining which for Cadia is 50 years (ie spreads the capital cost over a very long period) - currently NMPP may only be about 15% the size of Cadia resources.

The comparison does not stack up in my view but it's an interesting perspective. The comparison would be more likely to stack up if the NMPP resources were at least 4 times as big as they are currently (a higher grade would obviously help as well) - is that possible?