Hi daisy,keep in mind that the scoping study was based on the...

Hi daisy,

keep in mind that the scoping study was based on the old high grade core resource estimate. With the recent JORC resource upgrade, that high grade core resource estimate has increased by around 55% to 77 Mt @0.82 % Cu and 0.27g/t au.

Based on that increase alone, the NPV should be a lot higher for the upcoming DFS. Cash costs from the Scoping Study were estimated as follows:

"C1 Cash Cost during the first 10 years average US$0.73/lb Cu and LOM average of US$1.29/lb Cu, net of credits"

The copper equivalent annual production was estimated to be around 27.700 t of copper equivalent (22kt Cu, 27k oz Au).

In today's terms of revenue, that would around 250 M USD revenue @9.000 USD/t Cu price.

As outlined above, Cash costs are estimated at 17,38% (0.73 USD/lb) of today's Copper price (4.20 USD/lb), leaving an extremely healthy margin of 3.47 USD/lb or 575% profit margin. That is extremely profitable in my books.The following is a simplistic calculation without considering the pro rata Capex, interest, tax etc.:

You could say that, after deducting OPEX, around 82,62% of the revenue (206,55 MIO USD or 300 Mio AUD) will be left to cover CAPEX payback, loan interest, tax, etc.. Which is why we will have such a short payback period for the initial CAPEX of just 2.67 years.

Looking forward to the final DFS numbers.

In my opinion, CLA will be in the lowest quartile of cash costs for copper producers on a global scale.