June 19 PEA.... PEA Highlights The key financial outcomes are...

June 19 PEA....

PEA Highlights

The key financial outcomes are summarised below:

• Project after-tax real Net Present Value (“NPV” of US$375 million at an 8% discount rate, based on a discounted cash flow model with:
  • a project life of 31 years with saleable product of 2.5 to 3.4 million tonnes per annum (“Mtpa”
  • total sales of 83 million tonnes; and
• Total Life of Mine (“LOM” free cash flow of US$1,465m.
• Total direct operating costs (excluding royalties) are estimated at US$3.1 billion (rounded).
• Total project costs (direct and indirect operating costs, capital spend including contingency, rehabilitation and sustaining capital) are estimated at US$4.5 billion (rounded).
• The project is potentially highly profitable with a discounted payback (based on NPV) in 3 years.
• Average operating costs of US$37.62 including US$31.30/t Free on Board (“FOB” for hematite and US$37.43/t FOB for magnetite.
• Total revenue estimated at US$6.8 billion (rounded).
• Total capital cost estimated at US$326 million including contingency of US$44 million.
• Rehabilitation costs of US$38 million and sustaining capital expense over LOM of US$54 million.