The OFS outlines a robust project with an 11-year mine life for...

The OFS outlines a robust project with an 11-year mine life for Stage 1. The Ore Reserve supports a significantly
longer mine life of 20 years. The Mineral Resource is substantially larger and, if converted to a Reserve, could
support a mine life of some 30 years. The company has completed a PFS on Stage 2 (details not released
publicly). We have assumed that Stage 2 will be executed and will begin production in FY2032. The project also
has strong exploration potential.
FID is targeted for mid-CY2024, and RXM is only looking to introduce a partner if it will enhance the project’s
value. We assume that RXM will sell 40% of the project for 75% of RXM’s NPV valuation of Stage 1 (allowing the
partner to participate in Stage 2 upside) and that, going forward, RXM will own 60% of the project.
Based on the existing Ore Reserve and using the production profile defined under the OFS as well as our own
assumptions on the Stage 2 project, we model a combined mine life (Stages 1 and 2) of 25 years. Given the
scale of the existing Mineral Resource, further mine life extension is probable at Hillside; however, we have not
taken that into consideration in our valuation of RXM.