Project Economic Forecast

The Ranobe Mine is projected to have low operating costs, high revenue to cost ratio and low capital intensity. The forecast low operating cash cost of ~$95/t of product combined with the high in-situ ore value is projected to result in the mine being one of the highest revenue to cash cost operations in the mineral sands industry. When combined with the low capital intensity and absolute capital required for the initial development, currently estimated as $150m including working capital, the project is forecast to deliver an IRR of around 45% and an NPV of more than $320m over a 19 year life.

Key Project Metrics: Ranobe Mine High Grade Starter Pit

Ore Mined 145 million tonnes
Average Grade 8.1%
Tonnes Per Annum 7.0mtpa yrs 1-109.4mtpa yrs 13-19
Mine Life 19 years
Ilmenite 400,000 tpa
Rutile/Zircon Concentrate 43,000 tpa
Capital Investment Initial US$131m
Yr 10 US$24m
IRR (after tax) 45%
NPV (after tax, 10% real) US$323m
Payback ~2 years
Annual after tax cash flow ~US$51 m

(From TZMI Scoping Study July 2011)