All in all a very encouraging quarterly report from my...

All in all a very encouraging quarterly report from my perspective.

it reads like an FID announcement 3 months ahead of FID.

NAIF Board decision expected anytime between now and end of March.

Updated BFS due anytime between now and end of March.

Financing completion post BFS in second quarter. Contingencies expected to be modest.

improved mineral sands prices should flow through to BFS and help boost NPV.

Capital cost remain inline with previous estimates.

First production expected in first quarter 2024.

$28mil in SFX bank enough for working capital and to cover the $10mil FID commitment. Further cashflow likely to come in from sale of other non core assets.

no mention of port situation however I'd heard that all parties see the benefit in working together and possibly structuring arrangements where both ports (Broome and Derby) are available for use.

The SFX share price is priced as if there is still a good chance that financing falls through or that costs have blown out, or FID won't happen. However reading the quarterly I get the sense that internally (within KMS) FID has already happened. Initial works are advanced and over $50mil has been committed to procuring supplies for construction.

the major components of engineering, a commercial project and financing all appear to be well advanced and on track.

If I take that read of the announcement I see a stock that based on peer comparison should trade at between 80c - $1.00 on 'actual' completion of the finance and FID (expected in next 60 days) and is currently sub 50c.

the fact that SFX has taken the long road may be providing opportunities for those who can see them.

all the best