Ann: Major Sulphate of Potash Exploration Target at Lake Wells, page-37

The question of potential resource size and making comparisons is a bit useless and flawed. The market for SOP is growing steadily with current demand at 6 Mtpa. Brine producers typically have the lowest opex provided they have the right chemistry and permeability which governs if and how much can be produced (not the overall resource size) and good access water to transport. The RWD project at 400 ktpa would be a significant new mine, they also easily have the largest and highest grade resource. However given the size of the SOP market it would be impossible for RWD to utilise this resource is the same way as larger bulk commodity markets. For GPH assuming that they hit their target numbers at just the low end of 75 kt pa with a 6Mt recoverable starts pushing towards 100 year mine life. So why should GPH or RWD be valued on a $/t basis? Its useless (key broker reports using $/t basis...). Bit similar to graphite, uranium, lithium, REE, lithuainium and other smallish markets, but without the same marketing and competition issues, there will never be 100 odd companies flogging SOP or MOP projects on the asx.

What is important is firstly being able to produce SOP and how much, its not a given that this is possible, water supply and the amount of after mine gate costs. So the ability to pay off capex and then a cash flow/PE basis would be the right method of valuation for me. At the moment the costs are not that well understood, i suspect there is a lot of room to improve the RWD scoping study numbers and SO4 has not released anything. Has GPH got the production rate right for a solid return on investment? Or was this business plan cooked up on the golf course before debrief and cocktails one afternoon? Im not sure.

Short term, would want to see the next placement go to strong hands without options, assuming the options are exercised latter in the year it should be the last placement for a significant time. Id want Creasy to put more muscle in the management team once his 20% is placed as per TLG and other companies he is involved with. Also start talking about the gold projects again is not the worst idea.