Ann: DFS Delivers Strong Results on 1st Stage of WBP Development, page-9

Key points:
- 17 year LOM for 663,000oz
- AISC at US $1,027/oz.
- Funding of US $50mil, and 5.5 year pay back period. However, that assumes only Qala Shallows will be up and running, and does not reflect that Main Reef will be producing in years 3 onwards and therefore pay back could be much earlier. Also, if using a POG of US$ 1750, then if they are able to sell gold above this, that will also help paying back financing early.
- NPV of AU$250mil for Qala Shallows alone, on Gold Price of US $US 1,750 - again, nothing baked in for Main Reef and other developments, or rising gold price. I expect NPV to rise with higher gold price, and post-Main Reef DFS.

Also to note which is not readily seen in the DFS, is that Main Reef DFS will commence in Q4, and that the early mining initiative will also commence in the next few months. This means that gold will be mined this year, and that average production for next 12 months will be circa $2-3mil per quarter, and approx. $10-12mil overall. This is important to note as it is around 1/5 of the total funding.

I think this is better than market expected, particularly LOM, whilst AISC is also at the lower end of expectations. Still reading the rest of the document atm.

Production will hopefully be fast-tracked for Shallows, but given the mining initiative, there will still be gold by year's end.

Now we wait to see whether Harmony strikes post-DFS...