Ann: Exceptional Scoping Study Results at Coglia Ni-Co Project, page-4

A really positive scoping study from PNT this morning.

They are forecasting pre-production CAPEX of A$377M and production at a globally competitive C1 cost of US$4.10/lb, and AISC of US$4.68 providing a significant margin, even to current significantly depressed spot nickel prices at ~US$8.50/lb. The operating costs assume a highly conservative 50% recovery rate, producing ~10.9Kt of nickel equivalent per annum, in turn generating US~$84M of EBITDA per annum. Over an initial 10-year mine life (noting the scoping study considers less than 1/3 of the total MRE), Coglia generates at NPV8 of $409M and IRR of 32%, payback 3.2yrs, exceptional results at current pricing and providing substantial leverage as the global nickel market recovers and ascribes increased value to more environmentally sustainable sources of nickel.

For a junior explorer this is an outstanding result, indicating the potential for a strong commercial outcome.