A few other things came up in my discussion with Simon in the...

A few other things came up in my discussion with Simon in the last few days.

I was talking to him about how BGL’s AISC guidance came in about 70% higher than their DFS in 2022 which I still don’t understand how they could be so much higher than the DFS. His view is what matters is CAIC ie cash generation after all costs, not AISC which is what he intends to focus on - I assume that will be clear when SPR release a FS. (He told me BGL has 14 jumbos which is expensive).

BTW he is not a fan of brokers. He pointed out that brokers cause a lot of problems intentionally on HC on some stock threads which I assume is up or down ramping stocks.I was not aware of that. He has other reasons for not being a fan of brokers. I expressed the view that some brokers reports are not very good. In early 2022 2 brokers would not even return his calls and he was sort of banned from one of their offices.

I asked him if he would defer the restart if they found another NN or Pepper - No was the answer - he wants to drill enough to be sure they have 10 years of production and once they reach that milestone it will be restart decision time. My interpretation is that he wants to drill out Pepper to mostly indicated status before releasing a FS and ore reserve probably first half of 2025. So maybe a restart is possible 1st half of 2026.

In today’s presentation and verbally to me yesterday he commented that they can mine between 75m to 100m depth pa. So doing the sums allowing for recovery that is about annual production of at least 140I ak pa (75m and 2,000 OVM) or 175k Oz (75m and 2,500 OVM) or 210k Oz (75m at 3,000 OVM) or at 100m is 185k Oz, 235 k Oz and 280k

I think the annual production average over 10 years may be between 175kOz and 200kOz. Over time with ew discoveries those production figures may increase.