@Kikker1959I am very happy with this contract. I can only make a...

@Kikker1959

I am very happy with this contract. I can only make a rough estimation as this is highly comprehensive and technical contract. It's hard to understand all aspects of it.

Roughly $1b for 4 years and yearly $250m.

It covers the construction and production. (This must be understood well)

It covers all aspects of underground construction, including significant early capitalised development.

The underground mine will have 90kms of underground tunnels in total for the life of mine (LOM) and
approximately 60 kilometresof a total 90 kilometres will be build during this contract period. Therefore the 2/3rd cost tunnels of 23 years LOM will be done in this 4 years. That's a good cost advantage for the rest of the mine life.

It also covers the whole infrastructure of remaining 23 years of mine life, like shafts and all other infrastructure. I know a lot about the tunnel construction costs done in Australia so this cost is very low. (my ex-wife who holds a lot of LTR shares is a tunnel estimator so I know a lot about the tunnels).

The contract also covers the production across the Mt Mann and Northwest Flats orebodies for 4 years.

That is fantastic.

LTR will produce 3mt ore or 600kt spod per annum and will make around $2.5b revenue (at $4000/t of spod. Not saying $5400/t which is ave. sales price of Greenbushes in H1-2023).

So, if we pay $250m for underground mining every year that's quite a good fixed cost IMO. And that includes the initial cost of infrastructure. The cost per ton of spod from underground mine will be high as it will be a very high grade ore.