Ann: Annual Mineral Resources and Ore Reserves Statement, page-16

'Hill of Value' financial metrics used to optimise the Red Lake gold mine

"The current Ore Reserve estimate is based on a strategy that maximises economic gold inventory and undiscounted cashflow within the [Red Lake] mine plan."

"In April 2025, Red Lake completed a Hill of Value-style strategic optimisation study." [see pages 94/95 of the 2024 Annual Mineral Resources and Ore Reserves Statement]


If you would like to understand how Hill of Value optimisation works, take a look at AMC's YouTube video presented by Brian Hall.

Brian Hall redefined the definition of cut-off grade, showing that the highest NPV is not created through maximising the reserve of the deposit.




For those of you who were shareholders in Oz Minerals Limited, it also used Hill of Value financial metrics to optimise projects. A comparison was performed of how prioritising particular financial investment metrics (Net Present Value (NPV), Internal Rate of Return (IRR), Present Value Ratio (PVR) or Return on Invested Capital (ROIC)), influenced the optimised mine design, rate and schedule.

https://papers.acg.uwa.edu.au/p/2063_77_Hocking/

Note the reference to Hall B (2003) in the footnotes. This is the same Brian Hall who presented the AMC YouTube video, above.

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.