Demand for Toliara to proceed, page-35

A few extra thoughts for discussion:

- Tim sounds positive that they will extract some extra mine life out of the higher-grade sub-set of the North Dune and Bumamani deposits in 2024. Bunamani may provide a few months but it’s only small and I’m not sure it would be viable on its own. There is a higher grade line running north through the northern dune that may have some potential to give them an extra 6-12 months (refer extract from North dune reserve study below).

- Tim seems very keen on the Kuranze region. Looking on google maps, I can barely find any buildings through the area. So if it does contain HM, the land access and permitting should be much easier to get across the line.

-Interesting reading figures on the project approval on BHP’s Jansen Potash this week. BHP have given the go ahead based on an IRR of 12 to 14% and 7 year payback - doesn’t sound that attractive but well justified on the basis of a top quartile cost (EBITDA margin of 70%) and 100 year operating life. Mineral sands is obviously a very different industry, but it’s interesting to compare to the Toliara DFS figures (IRR of 21.4% and payback period of 4.25 years) given it is also top quartile (EBITDA margin of 66.2%) and expected 100+ mine life.