Fulang, You really are coming up with a ridiculous argument....

Fulang, You really are coming up with a ridiculous argument.

Inland Strands
50% of the mine feed is within 500m from the processing facility and the maximum distance to the southern inland strands pit is ~1.5km.
The grade of this mineralisation is 20%+ VHM.

Tormin Beach
Tormin beaches would have had an average travel distance last year of 2.5km, VHM grade of ~7%. the VHM break up at the beaches contains significant less Zircon and Rutile which are higher value HM.

Comparing the two,

The inland strands stockpile is 1/5 the distance and has a grade 2-3 x higher than Tormin beach
The operating costs for processing the inland strands will be significantly lower per tonne of final concentrate.

The following is from the Septembers QTR report, it shows both QTR's during the peak of the oil price caused by the Ukraine/Russian conflict, During this period there was limited mining of the inland strands.



The average cost of mining from the Northern beaches (55%) and Tormin beach (45%) was US$90-100 per tonne.

Now that MRC has recommenced mining of the inland strands, that have 3x higher VHM grade to Tormin beach. The overall Unit cost per per tonne will significantly reduce due to the grade, then we have the other bonus of the significant reduction of the Price Of Oil, which was around US$100-125 per barrel over this 6 month period. The price of oil has almost returned to the same levels are pre Ukraine invasion. Which will also significantly lower operating costs by ~25%





Fulang, you might have 40 years of experience with consulting Mineral sands projects, but you have failed to understand that these 3 Rigid Trucks have not to been used for 12- 18 months when the company ceased mining the inland strands. The OPEX is clearly stated in the QTR reports, which shows the company has been operating marginally for the previous 12 months with the oil price nearly doubling in early March 2022, These prices have remained significantly inflated for at least 6 months and have nearly dropped back to 2021 prices

If the total cost of mining during a time when oil prices rose from US$70 per barrel to $130 per barrel where the total mining costs per tonne were around 90-100 per tonne of HMC and the ratio of mining was 50-60% from the northern beaches.

What do you think is going to happen to the price per tonne of HMC now that the price of oil has reduced back down to US$80 per barrel and 50% of the mine feed has a grade 2-3 x higher than the Tormin Beach, and shipping costs have also returned to normality?

IMO, the Northern beaches' cost will most likely stay at a similar level due to the lowering of HM grade which would be offset by the lower price of oil. And then we have the cash cow from the inland strands which will provide 2-3x HMC vs Tormin beach.

I honestly don't care what truck they use to mine the inland strands, the costs will be significantly lower than the mining costs of Tormin beach and it will produce 2-3 x more HMC.

As I said yesterday, I am glad this is our biggest concern, It does pay to look at the big picture rather than focusing on one point.