Ann: KCGM Mill Optimisation PFS Presentation, page-14

Typically light on facts PFS presentation given it's too hard right now to make a call or start any major new capex project in WA. FWIW, I quantified some of the important variables on the different options (assuming the study plot was close to proportionally accurate). Clearly the 22Mtpa new build is a non-starter. Both the 17 and 24Mtpa options look good to me based on ~25% IRR and ~3-4 year payback at more conservative A$2250/Oz assumption. In fact, 25% is post-tax making it very tasty indeed.

If expansions were risk free spreadsheet propositions then the 24Mtpa option wins hands down... but bigger capex refurbs bring more risk of capex blowouts and performance disappointments. Short of the gold price collapsing, management will go for the 24Mtpa refurb and gamble on meeting budget, thus generating ~25% IRR on $950M capex while increasing production 200kOzpa and dropping AISC $200/Oz. Management might talk about 'conservative approach' but we all know gold companies are for gamblers, run by gamblers... if you want safe go buy some industrial.

Appreciate updates by anyone listening to webcast.