Ann: Pre-Feasibility Study Further Improves Poochera Economics, page-205

They need to get the mine permitted before they can mine and sell product. They will permit what gives them the most robust economics.

In the first year the can ship ore overseas for toll-refining for instant sales at high margin.

If they try to sell the DSO directly it would be at a gross margin of only about 20%.

By toll-refining the DSO overseas they lift the gross margin to around 45%+. This allows them to achieve fast payback. 15 months from starting operations on site.

In the first year they do this:



then in the second and subsequent years they do this




The important thing is that the higher margins they achieve by toll-processing overseas funds the wet-processing on site. Toll processing is very common for industrial minerals. Our MD James has great experience setting up tolling agreements for previous employers.

Once they have installed the wet-plant on site they could potentially also sell 267,000 tonnes per annum of unprocessed ore at lower margin.

It's all to do with limits for hauling from site. Initially they will permit 500 kt pa of shipping from site, they may lift this at a later date.