Ann: Great White Kaolin Project - Definitive Feasibility Study, page-327

Hi thanks for your estimate, can you please add your thoughts on why you think it is a high risk build / operation?

Looking at the DFS and its peers already operating in WA and VIC, the physical process looks relatively simple to me - a lot of free digging, basic separation using cyclones, then grading and bagging, then on a truck. I'm not understanding what could go so wrong here as to put the DFS assumptions as overly optimistic. If anything they already look close to "worst case" and I guess "worst case" is what the market response was.

At 81m EBITDA it looks close to a PE of less than 5, and a LOM gross margin of near 50%. Factoring in the conservatism around those figures, this is outstanding compared to other base metal producers in my opinion. Add in the other applications and the price at this level is compelling.