Stage 1 FeW Vietnam 4,000tpa (Big Hill 1,600tpa)Conversion costs

Stage 1 FeW Vietnam 4,000tpa (Big Hill 1,600tpa)
Conversion costs <$2.50/kg
Feedstock = Tungsten concentrates minimum 65% WO3

Who has the 40% interest in the Vietnam project?
Hong Kong based Asian Tungsten Products Company (ATC)

Why choose vietnam for a plant in the first place?
Total capital costs for stage one of the project are estimated at approximately $US16.3 million.

$100 million to get big hill up and running? Why so much?
Consequently, Big Hill has now been optimised to provide the maximum amount of feed to the ferrotungsten plant, rather than to maximise Big Hills NPV. What this means is that the Big Hill project has been optimised to mine lower grade material at higher rates to maximise concentrate production, which optimises whole of Company NPV. If Big Hill was optimised to maximise the project NPV, we would expect the Company to reduce the plant size and increase the mined grade, thereby reducing capex and increasing margins, and therefore profitability.

The capex for Big Hill of A$112m is significantly higher than our expectations of A$50m, due to the requirement to increase Big Hill throughput. This capex includes A$60m for the plant, A$25m for other non- plant infrastructure including access road widening and causeway construction, as well as A$19m in indirect costs, including A$14m for EPCM costs. Hartleys Research 7 May 2010.