Sulphuric Leach Method Discussion, page-10

After reviewing the latest vat leach update and in conjunction with some of the comments made by TB during the proactive investors video I've decided to refine my above projections to take into consideration this new information.

It seems as if the production rate of the new sulphuric acid vat leaching route will be quite a bit less than the hydrochloric acid plant proposed in the initial SS. This in itself will have a significant impact on capex, although the current focus without doubt is set upon optimising the vat leaching for our run of mine material as this will eliminate any need to fine crush, grind, or concentrate our ore (even further capex reduction).

I've now included credits from alumina and magnesium in my table below, reduced the throughput and adjusted the capex to a less conservative number than used above. Keeping in mind that high purity alumina and magnesium fetch premiums of near ten fold than that of their respective lower grade product, much the same as the premium for 99.5% battery grade V2O5 when compared to 98% V2O5 flake. However the key difference is that there already exists significant demand for HPA and high purity magnesium (Mg) and thus providing even greater scope to improve earnings potential..

If margin ends up being > 100% then the payback period could end up being less than 1 year for a ~AUD$700m plant. As I've said, if capex is brought down then IRR can be truly unlocked.