Lindi Jumbo Project NPV, page-18

The project is optimised and awareness of expected product from reserve needs to be available...The Company derisked by decreasing thru puts to 800 tons per day with a 1000 ton available thru-put based on a 10-hour shift...Grades at 17.9% LOM all give an NPV...The reality a higher NPV is achievable with the option to high feed grade (23% TGC) the project in the early years...Thru puts can be achieved at the rate of 1000 TPD

Management was conservative according to de-risking the project and further mitigating the startup risk...Just because it was not done does not mean it can not be achieved...Same project Higher NPV in early years...





General formula m x (r+1)/g + p/g

Where m is mining cost, r is strip ratio, g is grade & p is processing cost

Project A 1000 tons per day 17.9% TGC

ROM mining cost per ton unit US$3.14 x (4.4+1)=16.95 /17.9% = US$94.69
Processing cost per ton unit US$27.56 / 17.9% = US$154
ROM Ming cost US$94.69 + Processing cost US$154 = US$248
1000 tons per day x 300 days x 17.9% x 90% recovery = 48,330 tons
Revenue US$73,944,900
Mining and Processing cost (248 x 48,330)= US$11,985,840
EBITDA US$61,959,060
Life of mine 24 years EBITDA US$1,487,017,440

Processing cost per ton unit is stagnate to grade....

Processing cost per ton unit US$27.56 / 15 % = US$184
Processing cost per ton unit US$27.56 / 17.9% = US$154
Processing cost per ton unit US$ 27.56 /23% TGC = US$120

The plant has 20% redundancy from 800 tons per day @ 17.% TGC feed grade

Project has capacity first 3 years of operation...1000 tons per day @ 23% TGC

What if the project was optimised in the early years...

Updated Reserve DFS 2019
Thru put 25,000 x 12 months = 300,000 thousand tons (1000 tons per day)
Mining ROM per ton unit US$3.14
Processing per ton unit US$27.56
Basket price US$1530
TGC 23%
Strip ratio 4.4:1 example only
Cut off 10% TGC

Project A 1000 tons per day 23% TGC

ROM mining cost per ton unit US$3.14 x (4.4+1) = $16.96 /23% TGC = US$73
Processing cost per ton unit US$27.56 / 23% = US$120
ROM Ming cost US$73 + Processing cost US$120 = US$193
1000 tons per day x 300 days x 23% x 90% recovery = 62,100 tons
Revenue (US$1530 x 62,100) US$95,013,000
Mining and Processing cost (197 x 62100)= US$12,233,700
EBITDA US$82,779,300

Regards Croc (whoops no night shift included...)