Ann: Green Pig Iron Engineering Study Contract signed, page-23

Shipping prices have been and still are at extortionate prices. Shipping from the USA to China would have represented about 25-30% of costs even before shipping costs went crazy. This dislocation of shipping markets will ease once Covid is endemic but today is massive risk for a small company to take on with such volatile pricing in iron ore pricing. Eventually things will trend back towards mean but in the short term any new iron ore product will have to wear high costs. The beneficiaries would be the ship owners not Magnum shareholders.

DSO was an opportunity that needed to be investigated given high iron ore pricing last year but it has proven to be highly volatile and I really struggle to see why anyone would suggest diverting the attention away from a highly lucrative long term domestic green pig iron strategy in a stable and growing market, for a high risk,opportunistic iron ore development.

For a Company of Magnum's size and capital base developing DSO would inevitably draw working capital and management time and focus, inevitably delaying the green pig iron strategy.

Producing a high value add, high margin green pig iron product for the US domestic market beats DSO which has more volatile pricing, lower margins and greater exposure to geopolitical risk of problems between China and the USA.

Transport costs are a very large part of costs so a domestic market has significant impact on profitability.

The share price came down because iron ore prices came down. The Company has spent the last 6 months changing the narrative from iron ore to green pig iron. This has added additional layers of work and time to the timelines but we are now on the way.

I get your point but I think the decision they have made is the course of action that will maximise shareholder returns and lower risks in the medium term.

That is what creates shareholder value and I am so glad personally that they are focused on that rather than chasing short term high risk opportunities.