Ann: Strong Progress at Pilgangoora as Production Ramps Up, page-34

Positives -

- Fines circuit seems to be working well with consistent production and saleable product.
- Fines circuit is said to be the larger proportion of our output.
- Plant running at 80% of nameplate. Assuming fines production is half output that means running at 40% of nameplate (which is about 12kt/mth based on 30kt/mth at nameplate)
- 12kt/mth gives us a decent first shipment as fines circuit has been running for a while.

Negatives -

- DMS not quite where we need it to be yet.
- Grades is good but inconsistent.
- Iron is high - I don't see this as a significant cost because iron removal circuits were always expected. However I think things like this were probably included in stage 2 DFS when we got a higher opex number than the original DFS

Other noteable points.

Recoveries expected at 75% by Q4 which is only 5 weeks away. This to me suggests they are confident of ironing out the kinks in the DMS because we wouldn't be hitting 75% recoveries without the DMS working properly.

If we can be at 90% run rate and 75% recoveries and feeding good grade (we have a lot of 1.5% at surface) we could be producing 25kt/mth by October.

When I ran numbers a few months ago I budgeted about 80kt this calendar year which I think is still achievable.

Not writing off my 15kt first shipment call - might not reach it but I expect more than 5kt. We should be producing at least that each fortnight currently and they already have product to haul given the "imminent start"