Ann: Corporate Update May 2017, page-5

Hi Mont,
(a)The idea is that the current 2017 ramp-up cashflow (200K ton) will be used to finance the production lift to 600K ton in 2018 @ a FOB cost of $25/ton USD (Phase 1)
At say an average FOB price of $100/ton FOB, this would give us $45 USD mil GP, say $40 mil USD net profit ($53.5 mil AUD)- EPS of say 3c

(b) The next relevant level is 1 mil t/p/a (phase-2 2019 @ $41/ton USD FOB cost)
IMO the mix of coking coal to thermal will have lifted and the FOB sales price should lift to at least
$120/ton FOB USD. This should give us a GP of $79 mil USD or say a net profit of $70 mil USD
($94 mil AUD) EPS of say 5.25c

(c) Phase 2 of 2 mil t/p/a +by 2023 does not have an estimated FOB cost yet. One can only assume that
with extra rail/port costs that the FOB will be close to $50 FOB cost USD.

The exceptionally low strip rate for phase 1 gives us substantial margins to kickstart Phase-2.

With an incredible mine life, we should see the P/E rise rapidly as production develops, IMO.