Going underground??, page-11

The early disclosure re the PHES possibility certainly indicated that it could happen in conjunction with the UG mining.

Those comments have just faded away. I do find that management tend not to draw attention to changes that have a negative impact like the huge mining cost overrun that is occuring.

I won't be surprised if the initial indication of a capital cost of $1m a MW for the PHES disappears into the ether along with the expectation of a worthwhile financial outcome.

Cultana PHES Knowledge sharing report can be found here

.https://arena.gov.au/assets/2017/09/Cultana-Pumped-Hydro-Project-_Public-FINAL-150917.pdfIts

a study of a 225 MW saltwater plant

Capital cost $477m (we have been told ours will be < $1m per MW i.e <$200m )

Operating cost $11m to $12m

Market revenue $56m

Ancillary revenue? $21m

"Based on these revenue streams, the project has been found to be economically viable with a post tax nominal rate of return of 8% to 12%, depending on a range of scenarios involving capital costs and revenue outcomes. The return is broadly comparable to a benchmark project hurdle rate commensurate with technology and market risks of a private sector investment in a project of this nature.