Ann: Production Update, page-93

Hi Silent.

Yes, agree.

i think we have to hope that the difference between our OPEX and selling price is large enough to convince our offtakers/investers that it is worth the punt to embark on stage 2. We have sufficient mine life.

Stage 2 would incur markedly lower OPEX because;
1. Shared H/O and admin costs.
2. Only operational staff on shift to be doubled
3. Improved metallurgical performance (lessons learned from Stage 1)
4. Infrastructure mostly already in place
5. Accelerate pay off of debt

The CAPEX for stage 2 should be much less too
because;
1. Hardly any site establishment costs
2. Hardly any design costs