HIGHLIGHTS • Scoping Study confirms robust economics for project...

HIGHLIGHTS
• Scoping Study confirms robust economics for project development: from 2014
◦ NPV9 of US$263M (real, after tax, unleveraged)
◦ IRR of 20%
◦ Payback Period of 4.9 years (undiscounted)
• Average annual saleable coal production of 1.4 Mt over a 26 year mine life from an underground
longwall mine
• Low average annual operating costs of US$70 per tonne product resulting from short rail transport
distances, low labour costs, royalties and taxes
• Realised coal sales price of US$143 per tonne assumed for Lochinvar low ash high volatile coking coal
(including freight benefit)
• Strong operating cashflows averaging US$75M per annum with an operating margin of US$73 per tonne
of clean coal
• Low project construction capital cost of US$284M (including 13% contingency) with only 7km rail spur to
connect to mainline rail to domestic customers and ports
• High yield of 71% (all inclusive LOM average including roof and floor dilution)
• Infill drilling and seismic surveys, first Reserve and Pre-Feasibility planned during 2015
• Construction planned to commence in 2017 with first coal production planned in 2018

The project back in 2014 looked pretty robust to me with cashflows of $75m per annum. that's not chump change .

We are currently within range with an excellent scoping study with hopefully more savings!

SF