Ann: Makuutu Rare Earths Project Scoping Study, page-101

Hi All,

Apologies if this post is repeating points made in earlier ones, I've been too busy crunching numbers to read them all.

The big problem here as I see it is the low NPV forecast of the Makuutu IAC project. US$321m project NPV x 60% prospective ownership (post BFS) leaves IXR with US$192.6m NPV. Divided by the 3.577b IXR shares (fully diluted) on issue gives the NPV per IXR share as US$.054 cps or A$.069 cps.

The biggest surprise fo me is the forecast OPEX of US36.30/kg REO, that's over $US1b OPEX over the 11 year LoM and about half the forecast revenues! Being an IAC deposit with a low strip ratio and simple leach heap processing this would appear to be an extremely pessimistic forecast.

I think that until IXR can produce a BFS with more realistic costings we will be wallowing with a shareprice around current levels. Bugger!