It is unbelievable how low it has gone.It is just a matter of...

It is unbelievable how low it has gone.

It is just a matter of time until more news drops.

3.5 months until the New Year, and then another month or two until the PFS is released.

Mining licence is the next major catalyst and de-risking announcement.

Iron Ore is at $92, so with lump and grade premiums (referring back to the comment from Paul that perhaps drum separation could be a good way to improve grade or overall tonnage), we should still have a sale price above $100/t.

Old announcements stated that at a 2mm crush, the lower grade materials go well beyond the 62% benchmark grade

I think once we get up to 2mtpa scale (year 3) the production DSO costs could be sub $40/t.

My reasoning

• no blasting - should be cheaper and faster
• We should get more than 40t on a truck once we get going (an extra 4t per truck will be a 10% improvement which is not insignificant), and establishing that we can add a 20t trailer to each truck would be a huge benefit
• additional processing and higher grades (drum separation or even crushed 2mm fines)
• ⁠the in country processing may (should) result in a discount on the royalty from 6% to 5%
• ⁠Infrastructure works like roads, river crossings and town bypasses should result in faster trip times, resulting in more trips / tonnes delivered per day / month
• Also, all numbers or forward from WAI will be conservative, and like you said, they are probably more conservative than the reality, and 10% - 15% wouldn't be outlandish - at $40/t and 10% padding is $36/t
• Plus the outcropping material which isn't included anywhere
• Bringing trucking in house could result in significant savings, an extra 10% would be massively significant ($2/t, or more given the Scoping Study was using ~$26/t)
• There's also the question over density per m³ that WAI used in the SS, which may or may not get revised up
• Other stuff

I hope the next 6 - 9 months go something like this

• Bulk sample permit (October/November)
• Mining Code (October / November)
• MOU with a preferred partner (October / November)
• Apply for mining licence (November)
• Bulk Sample funding (November)
• Bulk sample mining (December / January)
• PFS (Feb / March)
• Bulk Sample Delivered (March / April)
• ⁠⁠Mining Licence approved (March - May)
• Deal signed (May / June)
• Break ground on the build (July - August)

Let's see.