Ann: Investor Presentation - Equity Raising & Growth Strategy, page-22

Bruce Griffin ran through the presentation they released on the ASX, adding some extra 'flavour' as he likes to say around various aspects of each of the following:

• Growth Strategy
• Thunderbird Project
• South Atlantic
• Equity Raising

He started with a very impressive review of his CV - no doubt he is very capable and has the required experience.

I thought he dealt with concerns the equity raising was in some way for Thunderbird upfront and directly restated what was reported in the 14 Feb announcement, that everything is contained within the 'funding envelope' and that the equity raising was not in any way being used for that purpose. He reiterated the expected contingency funding surplus of $54m, and made the point to highlight that this is still very much the case today.

He had quite a bit to say in relation to the new Brazil project and, while the work still needs to be done on it, he has expectations it would produce similar returns to shareholders as our share of the Thunderbird Project. I got the impression the costs involved in Brazil will be much lower (both opex and capex) as the deposit is literally on the doorstep of an industrial port and much of the usual infrastructure we'd have to build is already available.

Some questions were asked in relation to returns to shareholders. He suggested the Company would seek to distribute a significant proportion of KMS dividends back to SFX shareholders in the form of dividends or share buy-backs whatever provided the best value to holders. Realistically this would not be until about 2025 and there would be a period where KMS cashflow will be split between repayment of its debt and returns to SFX/Yansteel.

The equity raising will ensure we are no longer perceived to be cum-raise by the market and cover all expected expenditures (including corporate costs, growth projects Due Diligence, the exercise of the South Atlantic option if we choose) following which we will be receiving cashflow from KMS. Bruce essentially implied there would be no more requirements for equity raisings. Even future development opportunities (including stage 2 of Thunderbird) to be covered by operational cashflow and very likely refinance of existing project debt (Orion) with more standard corporate debt in the future.

All in all, I came away feeling very comfortable with the guy that is captaining our ship. Seems to have a very good handle on every aspect industry (mineral sands technical, corporate finance & funding, deal structuring, stock market nuances).

Mining Network hosted the webinar and it is available on youtube here.. youtube.com/watch?v=juPSZjv1Nlk