Banter and general comments, page-37707

"I’d say the shareholders are still paying foor that very expensive equipment sitting there". And on what basis do you make that claim?

The reason for thinking core isn't paying for Lucas equipment sitting there is pretty easy - Core advised on 28 Feb that they had signed a settlement deed and that deed released each party from further claims. Lucas doesn't have any further claim against Core for having equipment at the ready. Lucas does however have a good commercial reason for keeping the equipment at Finniss, at least the next couple of months.

Lucas will be aware of the mining plan and know how much waste rock and ore is still to be moved. There's enough that you still need large earth moving equipment and they can be paid perhaps A$20-$30m. With the cost of mobilising and demobilising, others may be less tempted for a fee of that size given the work involved. If Core is happy for the work to be done quickly and put the presumed 1.4Mt of remaining ore onto the ROM, Lucas has the gear combination needed already onsite. Lucas providing a good but not necessarily super-sharp price is likely to win the contract for the work to finish open pit mining out of Grants pit. Lucas will know that and have made a short-term commercial decision to keep gear onsite as it means they can restart quickly and at low cost. Their gear onside will also discourage others from investing heavily in a bid unlikely to be won. Lucas mine out Grants quickly and then remove all gear from site later in 2024. Core knows the ROM will be overflowing at 1.4Mt extra less what the DMS uses over the mining period. Core want to restart mining for this final phase when ROM is low and perhaps stretch the mining to 6 not 3 months as that keeps the maximum ROM size more manageable.

Core of course needs to keep at least some tension into the restart tender process because saying "look you won, now tell me your price" is a perfect way to get a very ordinary price. Core know that so although they may go with Lucas, they need to look at alternative mining solutions so Lucas doesn't have a completely free chance to charge heaps and provides at least an acceptable price. That's why Core noted looking at alternatives - to keep some price tension in the bid Lucas will provide.