Ann: Quarterly Activities Report and Quarterly Cashflow Report, page-145

A friend spoke with the MD after the quarterly

The key points:

• They are considering a royalty deal to reduce debt service, increase capital expenditure and avoid equity dilution. The lender is happy with that plan
• The strip ratio should improve after H2 FY23. H2 FY23 should be the highest strip ratio
• H2 guidance is above the Stage 1 feasibility study average due to inflation (~25% cumulative), the temporarily high strip ratio and higher than expected dilution
• They are evaluating how to improve dilution. H2 guidance conservatively assumes no improvement in dilution. Dilution could be due to several minor issues (e.g. modeling, pit technicians, poor sampling, not properly facing up to the ore, etc.)
• Capital expenditure for Stage 2 Klondyke underground should not be needed until around H2 CY24
• The mood on the site is positive. Material movement is going well, which allows the team to focus on improving other areas