Ann: Proposed Divestment of Paulsens East Iron Ore Project., page-42

GWR is in the process of selling their Wiluna West fe project which contains 131mt@60%fe for $30m cash plus $2 p/t royalty.

GWR had a couple of jv deals where they were receiving royalties from ore trucked to Geraldton but have decided to sell the deposit outright to raise cash, presumably to acquire something else.

As the GWR sale is a new deal, it along with the CZR announcement due next week, will give SRK holders a guide as to the value of this deal. It feels like SRK and GWR are thinking the fe price will drop significantly this year, which is a possibility, though the same was forecast for 2023 and didn't eventuate.

I guess the fear is if the fe price drops then SRK is stuck with a debt they may struggle to pay out. The main gripe I see with SRK's deal is a lack of a royalty that adds value to the sale if the fe price stays strong. Giving away 20% of Apurimac seems excessive, though if given to an entity that was able to help bring the project into production, then it would make sense.

I'll wait for CZR to release their announcement before making any strong judgement, though I will say SRK has been a dissapointing company for many years, as has GWR. Both managements seem incapable of knowing how to add value for shareholders.