Ann: Positive Scoping Study for the Mackay SOP Project-AMN.AX, page-39

hi RedBeard

the RWD study was not particularly detailed

in respect to capital costs, there are still huge differences:

1. AMN have 34km2 growing to 59km2 of ponds to produce 370ktpa. the RWD ponds appear the same size of ponds for 400ktpa however the RWD SOP grade is 66% higher

2. the plant costs seem similar but the pond costs are different, with AMN $50M vs RWS $80M. I can't see how the ponds can be the same size for similar tonnage due to grade difference. RWD construction costs will be larger than AMN because working in the surface of the LM lake is much easier than working on the surface of LD lake. Still, the costs are too far apart. however, AMN do have a massive contingency of $52M.

3. AMN have 66.5GL of brine at 8.25 grade for 370ktpa, which is a recovery rate of 67.5%. RWD have the same brine for 400ktpa which is a recovery rate of 45%. I emailed Mick Ruane about this earlier this year and Mick said they had reduced their brine parameter to 55GL, which makes a recovery rate of 53% (although Mick wrote expected recovery rates based on other world projects is around 60%). So AMN, with lower grade, which in itself would be expected to recover less, has 7% more recovery than a benchmark and RWD 7% below.