Ann: Trading Halt, page-376

FWIW

Based on info in this post https://hotcopper.com.au/posts/58182850/single almost half of latest raise is earmarked for Morila Cap Ex (thanks @TheSparkGuy), of course we wait for announcement confirming this.

"Use of Proceeds

Morila Capital Expenditure - $43 million
Funds primarily applied to SAG mill refurbishment, plant improvement, infrastructure upgrades, critical spares and TSF lift and capacity expansion"

In Sprott Equity Research Report 17 May 2021

page 3 - "The SAG mill is currently not in the production plan, but we think refurbishing it is a possibility, as we estimate this could increase throughput by ~500kt to 4.5Mtpa which could generate an incremental ~20kozpa (US$35-40m revenue) for incremental processing opex"

page 5 - "SAG Mill: Currently the SAG mill is not part of the current mine plan, as the mine operated using a two-stage crush and SABC milling strategy but has since added a tertiary crusher. We believe the SAG mill does present an opportunity to increase throughput to ~4.5Mtpa from the planned 4.0Mtpa for limited opex and refurbishment capex, but as the next 1.5 years will draw heavily from oxide material, we expect this to come into consideration later in the mine plan."

From above Sprott didn't expect SAG mill refurb and resultant throughput increase to happen until around say Oct 2022. ~A$49-A$56 million p.a. ongoing revenue increase for $43 million spend, of course FFX would want to bring this forward if they could.

Why not take advantage of a beneficial raise environment? To not raise now would likely have been a very poor decision given demerger timetable, and IMO they had to wait for Goulamina updated DFS to "sell" the raise to the instos.

The time crunch caused by updated DFS dropping so close to xmas created a very tricky situation. As long as they are in compliance with ASX rules eg continuous disclosure etc they have met their obligations to shareholders.

AIMO