Ann: Response to Media Speculation, page-64

Hi Thesi,
I'm no brine expert, but I think you have interpreted the cut off incorrectly (if I read your comment the right way!).

With 500 mg/l cut off, this should mean that any brine that is lower than this level will not be economical to extract and process. Anything higher will generate profit. If the average is 750 mg/l, then it just means that there is a decent amount of brine at economically viable levels.

Your description made it sound like they reduce the 750 down to 500 when processing..?

Having a cut off of 500 vs someone else's cut off of say 350, just means that their brine must be simpler and ultimately cheaper to extract and process, because they can make money from lower grade brine than us.

The cut off will be driven by all input costs (labour, equipment, plant, processing reagents, power etc etc), and of course the assumed pricing landscape, so it may in fact be adjusted (up or down) in the DFS revisions due to any anticipated changes to any of these costs or the expected sale pricing.
Perhaps the cut off will drop due to a higher anticipated pricing..?
In that case, the SDV resources would likely increase (because more brine would be included now, that was previously excluded because it was below the cut off) along with the mine life and NPV.

I'm not sure how much brine was excluded from the estimates previously... It may be complicated by the very nature of a brine resource (fluid) and perhaps it's all just averaged out..? (Can anyone clarify?)

Does that make sense?

Cheers