• Pre-production Capital Cost of ~A$216M: Capital costs are reduced through less brine extraction infrastructure and condensed pond size. Capital costs increase as a result of the nett additional NAIF-funded infrastructure ($39M), a slightly augmented back end of the process plant to boost production rate and a larger 15.6% contingency (now $29M, previously $15M) to enhance certainty of delivering to budget.
• Material Contracts Advanced: The Company’s contracting strategy has been endorsed by proposed funding groups and independent reviewers. Key material contracts including process design and equipment supply; EPC/M, power station, gas supply and product haulage contracts are materially
advanced which continue to confirm the BFS/FEED capital and operating cost outcomes.
• Capital Cost estimate meets AACE Class 2: The FEED capital cost estimate complies with the AACE International® guidelines for developing a Class 2 estimate.
• Independent Technical Reviews: Independent technical reviews initiated by the banks have been completed confirming both the BFS and FEED outcomes.
• No change to Ore Reserves or Mineral Resources.
• Improved Financial Outcomes:
o Pre-tax NPV8 A$606M, IRR of 20.3% (previously A$575M and 20.4%).
o Average EBITDA of A$126Mpa, EBITDA margin of 61% (previously A$116Mpa and 61%).
o No changes have been made to the material assumptions utilised in the financial model, other than as detailed in this announcement.
• Low Cost Financing Identified: NAIF, German Government Export Credit Agency (ECA) Scheme (Euler Hermes).