Economics

(Bara Scoping Study 2020)

US$156m NPV at an 8% discount rate
31.3% IRR
17Mt @ 6.7% ZnEq (including Pb credits) resource (JORC 2012) including indicated resource of 3.8Mt @ 8.1% ZnEq (including Pb and Ag credits) - 4% cut off grade
Sub-Level Longhole Stoping (“SLOS”) mining method selected
700k tonnes per annum operation with a 7.6% ZnEq mined grade:

SLOS with ramp/raise-bore shaft access;
10% dilution;
3.5m average mined mineralised widths
Processing comprises an ore sorting front-end using X-ray Transmission (“XRT”) followed by grinding and flotation
Grade/recovery:3.3% Pb/87%; 4.2% Zn/86%; 26.7g/t Ag/85%
US$79m upfront Capex
3-year trailing average metals prices of US$2,668/t for zinc, US$2,099/t for lead and US$16.5/oz for silver
US$963m Revenue over Life of Mine (“LOM”)
US$477m Opex over LOM
US$471m EBITDA over LOM
49% Operating Margin (US$63.56/t all-in cost)
12-year LOM scenario
Conceptual LOM production schedule incorporates 100% of the existing Indicated resource in the early years, ending with elevated zinc grades in the deep Inferred zones
Deposit open to the east and at depth for potential production expansion during the mine’s life
Project’s 3-year Investigation Permit renewed until 15 November 2023 (as announced previously on 12 November 2020)’