Ann: Change of Director's Interest Notice, page-10

The Wesfarmers OC plan at its closest point (Pit F) gets to around 3-4 km from the tenure boundary with BCB. Wesfarmers studies had Pit F completing 2032 or thereabouts. So prospects of entry other than by drift are fairly limited from a western approach perspective (and in any case why would Coronado want to mine expensive B&P coal when there is still plenty of much cheaper open cut coal ?).

Then there is a question of CHPP and train loadout capacity. My recollection is that Curragh CHPP has 1,600 tph which at say 7600 hrs/year x 98% availability x 96% equipment efficiency would mean an annual maximum feed capacity of around 11.5 Mtpa. This is a sensitive plant particularly wrt set point and ROM coal blending to meet specs and a lot of effort has been put into it to try an get it to work optimally. In FY17 Curragh produced 13,677,269 Mt ROM and fed 14,589,414 to the plant according to the stats reported by Curragh to the QLD government in the production returns, with saleable (significant as this is what was railed and is approaching the train loadout capacity) of 12,027,748 Mt. Separate to plant capacity is ROM and product stockpile space which is also fully utilised by Curragh.

So for me I rule out and Curragh opportunites OTHER THAN potentially a deal for BCB to get some of the underground coal in MDL162 allocated to them with some sort of private royalty to be negotiated nd payable to Coronado.

This then leaves the only other Brownfield infrastructure option for BCB as Jellinbah, who recently expanded the CHPP and negotiated matched rail and port contracts to take its own production. Similar story there as for Curragh.

My conclusion is that BCB would need to stump up capex for all new supporting infrastructure in addition to the capex for drifts and shaft etc, and for me the current resource base and likely productivity rates from B&P are unlikely to service the quite large capital requirements for this project to make any sort of margin.

In this regard the Concept study due out soon will no doubt make the prospectivity of Cooroorah patently clear.