Southdown Project, page-16

Great to see management being proactive in moving the project forward and realising some value for shareholders as the $170 m spent on the project has effectively been expensed in the. Accounts of GRR. Timing couldn't have been better from a strategic point of view with the demand for high quality products attracting a price premium.

The selection of an intermediary is interesting being based in WA have having dealt with FMC before, although in a small deal. Also, FMC have been hit hard from having low grade ore and this would dovetail nicely into the business with eventual full takeout once operational.

Other have mentioned MGX, a possible fit with $500 m in cash. Between MGX, GRR and the third party, equity could be about $1b. The rest borrowings. All companies have existing cash flows to be able to service the debt in the ramp up. At 10 m tonnes per annum at $50 a tonne margin makes for a profitable business. At 70% grades it looks great.

This may impact the dividend payout, if they want to retain cash for Southdown.

looking promising.

DYOR