# EDGAR Filing Document

**Accession Number:** 0001898601
**File Stem:** 0001140361-23-015135
**Filing Date:** 2023-3
**Character Count:** 43405
**Document Hash:** 85f026042a4c30087028c0af9cfb1e2c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-23-015135.hdr.sgml**: 20230706

**ACCESSION NUMBER**: 0001140361-23-015135

**CONFORMED SUBMISSION TYPE**: CORRESP

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20230331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IPERIONX Ltd
- **CENTRAL INDEX KEY:** 0001898601
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS METAL ORES [1090]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** C3
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** CORRESP

**BUSINESS ADDRESS:**
- **STREET 1:** 129 W TRADE STREET
- **STREET 2:** SUITE 1405
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28202
- **BUSINESS PHONE:** 7045783217

**MAIL ADDRESS:**
- **STREET 1:** 129 W TRADE STREET
- **STREET 2:** SUITE 1405
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28202

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Hyperion Metals Ltd
- **DATE OF NAME CHANGE:** 20211210

------

<u>VIA EDGAR SUBMISSION</u>

Mr. George K. Schuler and Mr. Karl Hiller

Division of Corporation Finance

Office of Energy & Transportation

Securities and Exchange Commission

100 F Street NE

Washington, D.C. 20549

March 31, 2023

Re: IperionX Limited

Form 20-F for the Fiscal Year ended June 30, 2022

Filed August 26, 2022

File No. 001-41338

Dear Mr. Schuler and Mr. Hiller,

Please find our response to the comments set forth in a letter dated March 20, 2023 (the "Letter") from the staff (the "Staff") of the Securities and Exchange Commission (the "Commission") relating to the above-mentioned Annual Report on Form 20-F for the fiscal year ended June 30, 2022 (the "2022 20-F"). References to the "Company," "IPX," "we," "us" and "our" in this letter refer to IperionX Limited, unless otherwise indicated.

For your convenience, we have restated below in bold each comment from the Letter and supplied our responses immediately thereafter. Page references included in our responses are to those contained in Amendment No. 1 to the 2022 20-F (the "Amendment No. 1").

#### Form 20-F for the Fiscal Year ended June 30, 2022 Information on the Company
<u>B. Business Overview</u>

#### Exploration Results, page 33
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **We note that you have disclosures throughout the filing referencing a Scoping Study, which is listed as Exhibit 15.1, originally filed July 1, 2022 on Form 6-K. Please discuss this terminology with the qualified persons as it appears the technical report summary should be identified as an initial assessment, rather than a scoping or conceptual study, to utilize terminology that is prescribed by Item 1300 of Regulation S-K.** 

**Unless you or the qualified persons do not believe the report meets the definition of an initial assessment, which would be necessary to support your disclosures of resources, please arrange to obtain and file a revised technical report summary that is properly identified as an initial assessment rather than a scoping study, and similarly conform your references to the report in your filing. However, if you do not believe the report would be properly characterized as an initial assessment, tell us the reasons in your response.**

------

<u>Response 1</u>: In response to the Staff's comment, we plan to file a revised technical report summary that is properly identified as an initial assessment rather than a scoping study, and conform our references to the report in our filing of Amendment No. 1. We agree that our report would qualify as an initial assessment, which Item 1300 defines as a preliminary technical and economic study of the economic potential of all or parts of mineralization to support the disclosure of mineral resources.

<u>D. Property, Plant and Equipment</u>

#### Titan Project, page 42
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **We see that you have included a map on page 47, which appears to show the general location of the Titan Project. However, you must describe and illustrate with a map the location of your property, accurate to within one-mile, using an easily recognizable coordinate system, to comply with Item 1304(b)(1)(i) of Regulation S-K. Please expand your disclosures to provide the required description and map.** 

<u>Response 2</u>: In response to the Staff's comment, we will include a map with proper engineering detail showing the location of our property, as set forth in <u>Annex A</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **We note that you do not disclose the basket or weighted average price for your composite measure of Total Heavy Minerals (THM), used in determining your resource estimates; the associated metallurgical recoveries; or the operational costs and other parameters involved in establishing the economic cutoff grade.** 

**Please modify your filing to include such details along with a description of the methodology and calculation used to determine your cutoff grade estimate to comply with Item 1302(d)(2) of Regulation S-K. This information should accompany your disclosures of resource estimates either in footnotes to the tabulations or in adjacent disclosures.**

<u>Response 3</u>: In response to the Staff's comment, we will revise the disclosure as set forth as underlined texts in <u>Annex A</u> attached hereto. The Company respectfully advises the Staff that, based on discussions with the Qualified Persons, the basket price of THM is not typically used in the heavy mineral sands industry; instead, the individual heavy mineral prices are used.

<u>Exhibit 15.1</u>

<u>Technical Report Summary on the Titan Project, page E-0</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **The remaining comments in this letter pertain to the Technical Report Summary and the applicable content requirements. Please discuss these with the qualified persons involved in preparing the report. You will need to obtain and file a revised Technical Report Summary to address these concerns. We suggest that you provide us with the revisions that are proposed to address these comments in advance of filing an amended report.** 

------

<u>Response 4</u>: In response to the Staff's comment, we are hereby filing our proposed responses as set forth in <u>Annex A</u> attached hereto, in advance of filing an amended technical report summary to address these concerns.

<u>Section 11.8 - Cut-off Grade, page E-28</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Provide a description of the cutoff grade calculation and methodology, including all relevant parameters to comply with Item 601(b)(96)(iii)(B)(11)(iii). Such disclosures should specify the cutoff grade utilized in preparing the resource estimates, the Total Heavy Minerals (THM) basket price, metallurgical recovery for each component, all cost factors reflected in the estimate, and other details specified in the guidance above.** 

<u>Response 5</u>: In response to the Staff's comment, we will revise the disclosure as set forth in <u>Annex A</u> attached hereto. The Company respectfully advises the Staff that, based on discussions with the Qualified Persons, the basket price of THM is not typically used in the heavy mineral sands industry; instead, the individual heavy mineral prices are used.

<u>Section 13.3 - Production Target and Mine Schedule, page E-32</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **We understand that an optimized annual mining schedule has been prepared for the planned operations, targeting higher-grade materials. Provide disclosure of the modified cutoff grade used for the optimized schedule along with the associated parameters, such as basket price, metallurgical recovery, and cost factors, and explain how and when the remaining resources will be mined and processed, or clarify if there are no such plans.** 

<u>Response 6</u>: In response to the Staff's comment, we will revise the disclosure as set forth in <u>Annex A</u> attached hereto. The Company respectfully advises the Staff that, based on discussions with the Qualified Persons, the basket price of THM is not typically used in the heavy mineral sands industry; instead, the individual heavy mineral prices are used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Provide (i) the final pit outline and (ii) disclosures of the numeric values for the annual Life of Mine (LOM) production for waste material and ore, along with the associated grades, to comply with Item 601(b)(96)(iii)(B)(13) of Regulation S-K.** 

<u>Response 7</u>: In response to the Staff's comment, we will revise the disclosure as set forth in <u>Annex A</u> attached hereto.

<u>Section 16.2 - Price Forecasts, page E-48</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Provide a description of the individual salable product specifications and present the five- year historic prices with your forecast pricing to comply with Item 601(b)(96)(iii)(B)(16)(i) of Regulation S-K.** 

<u>Response 8</u>: In response to the Staff's comment, we will revise the disclosure as set forth in <u>Annex A</u> attached hereto.

<u>Section 17.1 - Environmental Studies, page E-49</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Provide the qualified persons opinions as to the adequacy of the current environmental plans to comply with Item 601(b)(96)(iii)(B)(17)(vi) of Regulation S-K.** 

<u>Response 9</u>: In response to the Staff's comment, we will revise the disclosure as set forth in <u>Annex A</u> attached hereto.

<u>Section 19 - Economic Analysis, page E-57</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Provide a detailed life-of-project cash flow analysis including the annual numerical values for all appropriate and associated line items to comply with Item 601(b)(96)(iii)(B)(19)(ii) of Regulation S-K. For example, this should include commodity prices, revenues, operational costs, capital costs, taxes, reclamation/closing costs, royalties, quantities of the mined and processed materials, associated grades, and the salable product quantities.** 

<u>Response 10</u>: In response to the Staff's comment, we will revise the disclosure as set forth in <u>Annex A</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **As inferred resources appear to have been included in deriving the after tax cash flow information, a separate after tax cash flow analysis excluding inferred resources should be presented with equal prominence to comply with Item 601(b)(96)(iii)(B)(19)(iv) and 1302(d)(4)(ii)(C) of Regulation S-K.** 

<u>Response 11</u>: In response to the Staff's comment, we will revise the disclosure as set forth in <u>Annex A</u> attached hereto.

---

| |
|:---|
| Sincerely, |
| /s/ Greg Swan |
| Greg Swan |
| Chief Financial Officer |

---

Via E-mail:

cc: Jeanne McMullin, Chief Legal Officer

Eric Scarazzo, Gibson, Dunn & Crutcher LLP

------

#### Annex A
<u>Response No. 2</u>

![](image0001.jpg)

#### Figure 2: Titan Project location of properties containing mineral resources (the coordinate system and datum used for modeling is UTMZ16N, NAD83)

------

<u>Response No. 3</u>

We have reported mineral resources, prepared in accordance with Subpart 1300 requirements of the SEC as part of our exploration and evaluation activities. On July 1, 2022, we filed a technical report summary for our Titan Project, dated June 30, 2022, which report is an exhibit to this Annual Report on Form 20-F. As of June 30, 2022, we have reported 431 million metric tons of mineral resources at a grade of 2.2% total heavy minerals ("THM"), containing 9.5 million metric tons of THM at a 0.4% cut-off. Slimes ("SL") and oversize material accounts for approximately 20% and 2.5% of the THM fraction respectively. Mineralization occurs as a single, large, and coherent near-surface deposit. In addition, preliminary analysis of valuable heavy minerals ("VHM") (which form a proportion of the THM) indicates a valuable mineral assemblage consisting of zircon, rutile, ilmenite, rare earth elements ("REE"), and staurolite.

T<u>he estimated economic cut-off grade of 0.4% THM utilized for resource reporting purposes has been calculated using on a revenue cost break even calculation and is based on the following assumptions:</u>

• <u>a rutile price of $1,030/t, an ilmenite price of $200/t, a rare earth concentrate price of $4,821/t, and a zircon price of $1,405/t. These prices are based on the historical 2017 to 2021 annual average prices and are considered conservative given spot pricing is higher than the assumed prices;</u>

• <u>recovery factors of 82.6% for ilmenite, 60.9% for rutile, 77.1% for rare earth concentrate and 90.8% for zircon;</u>

• <u>operating cost estimates of $3.00/t ROM mining, $3.00/t ROM processing, $0.40/t ROM transport and $0.90/t ROM general and administrative costs; and</u>

• <u>a royalty of 5% is included in the cut-off grade.</u>

<u>Response No. 5</u>

---

| | |
|:---|:---|
| **11.8** | **Cut-off Grade** |

---

A nominal bottom cut of 0.4% THM is offered, based on preliminary assessment of resource value and anticipated operational cost evaluated through preliminary engineering work.

<u>The estimated economic cut-off grade of 0.4% THM utilized for resource reporting purposes has been calculated using a revenue cost break even calculation and is based on the following assumptions:</u><u> </u>

<u> </u>

<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>a rutile price of $1,030/t, an ilmenite price of $200/t, a rare earth concentrate price of $4,821/t, and a zircon price of $1,405/t. These prices are based on the historical 2017 to 2021 annual average prices and are considered conservative given spot pricing is higher than the assumed prices;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>recovery factors of 82.6% for ilmenite, 60.9% for rutile, 77.1% for rare earth concentrate and 90.8% for zircon;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>operating cost estimates of $3.00/t ROM mining, $3.00/t ROM processing, $0.40/t ROM transport and $0.90/t ROM general and administrative costs; and</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>a royalty of 5% is included in the cut-off grade.</u> 

SEC Regulation S-K 1300 requires that all reports of Mineral Resources must have reasonable prospects for eventual economic extraction regardless of the classification of the resource.

As detailed in the Scoping Study<u>Initial Assessment</u>, Mineral Resources are amenable to exploitation, incorporating a multi-decade mine life and the application of conventional mining and processing technology. IperionX has used TZMI as the basis for pricing of ilmenite, rutile and premium zircon products, and Adamas Intelligence for monazite concentrate. Prices are detailed in Table 21, with recovery factors of 82.6% for ilmenite, 60.9% for rutile, 77.1% for monazite concentrates and 90.8% for zircon products.

The QP has used this information as the basis for determining reasonable prospects for eventual economic extraction.

<u>Response No. 6</u>

---

| | |
|:---|:---|
| **13.3** | **Production Target and Mine Schedule** |

---

Pit optimizations were completed in order to produce a production schedule on an annual basis. This resulted in a total Production Targets of 243 Mt @ 3.0% THM In-Situ with a mine life of 25 years. The mining schedule delivers an outcome with the first 14 years mining 100% of indicated mineralized resource only, and the remaining years mining the inferred mineralized resource, resulting in a total mine life of 25 years. The schedule is based on 57% of the total mine ROM material being in an Indicated category. <u>Currently we have no plans to mine and process the remaining mineral resources located outside of this optimized pit; however our plans may change as the market evolves.</u>

------

The mine schedule is planned to provide a continuous rougher head feed rate of 1,000 tons per hour. The cut-off grade is defined at 1.00% HM<u>THM</u> based on preliminary economic assessment.

<u>The estimated economic cut-off grade of 1.0% THM utilized for the purposed of determining the optimized pit in the Initial Assessment is based on the following assumptions:</u>

 

<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>TZMI forecast pricing for ilmenite, rutile and premium zircon products, and Adamas Intelligence forecast pricing for rare earth concentrate as set out in Table 16;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>recovery factors of 81.0% for ilmenite, 72.3% for rutile, 88.2% for rare earth concentrate and 83.3% for zircon;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>operating cost estimates of $1.94/t ROM mining, $3.60/t ROM processing, $0.53/t ROM transport and $1.56/t ROM capital expenditures; and</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>a royalty of 5% and commission of 3% is included in the cut-off grade.</u> 

Given the nature of the resource model, the block dimensions and the type of deposit, dilution is assumed to be included in into the modelled blocks, requiring no further modification for the purposed of this study in scheduling physicals for the financial model inputs.

------

<u>Response No. 7</u>

![](image0002.jpg)

***Figure 14: Titan Project mining outline (the mining outline defines the area mined and not a final open pit void as the process is incremental and pits are backfilled progressively)***

------

#### Table 18 12 : Mine production schedule with % Indicated category processed by time period.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year** | **ROM Tons** | **Inferred Tons** | **Indicated Tons** | **% Indicated Tons** |
|  | (Mt) | (Mt) | (Mt) | *(%)* |
| 1-14 | 136.5 | - | 136.5 | 100% |
| 15-25 | 106.1 | 105.3 | 0.8 | 1% |
| **LOM** | 242.6 | 105.3 | 137.3 | **57%** |

---

#### Table 13: Annual LOM production tonnage and grade.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Description</u>** | | | **<u>ROM AND WASTE</u>** | **<u>THM In-Situ</u>** |
| **<u>Units</u>** | **<u>ROM</u>**<br>**<u>Mt</u>** | **<u>Waste</u>**<br>**<u>Mt</u>** | **<u>Mt</u>** | **<u>%</u>** |
| <u>Year 1-25</u> | <u>242.6</u> | <u>163.4</u> | <u>406.0</u> | <u>3.0%</u> |
| <u>1</u> | <u>10.0</u> | <u>3.6</u> | <u>13.6</u> | <u>3.9%</u> |
| <u>2</u> | <u>9.8</u> | <u>6.2</u> | <u>16.0</u> | <u>4.2%</u> |
| <u>3</u> | <u>9.9</u> | <u>12.3</u> | <u>22.3</u> | <u>3.6%</u> |
| <u>4</u> | <u>9.9</u> | <u>4.8</u> | <u>14.7</u> | <u>2.3%</u> |
| <u>5</u> | <u>9.9</u> | <u>3.7</u> | <u>13.6</u> | <u>2.6%</u> |
| <u>6</u> | <u>9.7</u> | <u>11.7</u> | <u>21.3</u> | <u>3.0%</u> |
| <u>7</u> | <u>9.4</u> | <u>9.1</u> | <u>18.5</u> | <u>2.9%</u> |
| <u>8</u> | <u>9.4</u> | <u>8.2</u> | <u>17.6</u> | <u>2.8%</u> |
| <u>9</u> | <u>9.5</u> | <u>6.8</u> | <u>16.3</u> | <u>2.7%</u> |
| <u>10</u> | <u>9.6</u> | <u>6.0</u> | <u>15.6</u> | <u>2.7%</u> |
| <u>11</u> | <u>9.7</u> | <u>6.1</u> | <u>15.9</u> | <u>2.8%</u> |
| <u>12</u> | <u>9.9</u> | <u>6.6</u> | <u>16.5</u> | <u>2.8%</u> |
| <u>13</u> | <u>9.9</u> | <u>7.2</u> | <u>17.1</u> | <u>2.6%</u> |
| <u>14</u> | <u>9.9</u> | <u>1.7</u> | <u>11.6</u> | <u>3.1%</u> |
| <u>15</u> | <u>9.3</u> | <u>12.4</u> | <u>21.7</u> | <u>3.0%</u> |
| <u>16</u> | <u>9.5</u> | <u>11.2</u> | <u>20.6</u> | <u>3.1%</u> |
| <u>17</u> | <u>9.5</u> | <u>10.5</u> | <u>20.0</u> | <u>3.1%</u> |
| <u>18</u> | <u>9.4</u> | <u>6.9</u> | <u>16.3</u> | <u>3.1%</u> |
| <u>19</u> | <u>9.5</u> | <u>6.3</u> | <u>15.9</u> | <u>3.0%</u> |
| <u>20</u> | <u>9.7</u> | <u>6.3</u> | <u>16.0</u> | <u>2.9%</u> |
| <u>21</u> | <u>10.0</u> | <u>4.6</u> | <u>14.6</u> | <u>2.7%</u> |
| <u>22</u> | <u>9.9</u> | <u>3.6</u> | <u>13.4</u> | <u>2.7%</u> |
| <u>23</u> | <u>9.8</u> | <u>5.1</u> | <u>14.9</u> | <u>2.8%</u> |
| <u>24</u> | <u>9.8</u> | <u>1.0</u> | <u>10.8</u> | <u>3.1%</u> |
| <u>25</u> | <u>9.9</u> | <u>1.4</u> | <u>11.2</u> | <u>3.4%</u> |

---

------

<u>Response No. 8</u>

#### Table 21: Scoping Study 16: Historic, spot, and forecast product price forecasts prices (US$/t, 2022 real terms, rounded).

---

| | | | | |
|:---|:---|:---|:---|:---|
| Product | <u>Historic</u><br> <u>2017 – 2021</u><br> <u>(annual average,</u> <br> <u>US$/t)</u> | Spot pricing<sup>12</sup> | <u>Forecast</u><br> 2023 – 2027<br> (annual average, <br> US$/t) | <u>Forecast</u><br> 2028+<br> (annual average, <br> US$/t) |
| Rare earth concentrate | <u>$4,821\*</u> | $11180 – $12850 | $14325 | $17690 |
| Rutile | <u>$1030</u> | $1960 – $2280 | $1475 | $1285 |
| Chloride Ilmenite | <u>$200</u> | $390 – $470 | $305 | $310 |
| Zircon (premium) | <u>$1405</u> | $2500 – $3025 | $2240 | $1685 |
| Zircon (concentrate) | <u>$630</u> | $945 – $1330 | $1010 | $760 |

---

<u>\* Rare earth concentrate historic average pricing based on limited available data for 2017.</u>

<u>Pricing has been based upon the following standard product specification requirements:</u>

<u>Table 18: Initial Assessment product specification requirements.</u> <br>

---

| | |
|:---|:---|
| <u>Product</u> | <u>Product specification requirements</u> |
| <u>Rare earth concentrate</u> | <u>Mineral rare earth concentrate with 58.68 weight % total rare earth oxides (TREO) – as set out in Table 19. Value of rare earth concentrate calculated as 31% value of contained TREO plus 10% premium for Titan Project's heavy rare earth enrichment.</u> |
| <u>Rutile</u> | <u>Bulk rutile with titanium dioxide content (TiO</u><sub><u>2</u></sub><u>) of 94% - 96%</u> |
| <u>Chloride Ilmenite</u> | <u>Chloride ilmenite with titanium dioxide content (TiO</u><sub><u>2</u></sub><u>) of 58% - 65%</u> |
| <u>Zircon (premium)</u> | <u>Premium bulk zircon with ZrO</u><sub><u>2</u></sub> <u>+ HfO</u><sub><u>2</u></sub> <u>>66%</u> |
| <u>Zircon (concentrate)</u> | <u>Zircon concentrate with ZrO</u><sub><u>2</u></sub> <u>+ HfO</u><sub><u>2</u></sub> <u>>30%</u> |

---

#### Table 19: Key product specifications of Titan-derived rare earth mineral concentrate.

---

| | |
|:---|:---|
| <u>Rare Earth Oxide</u> | <u>Concentration (weight %)</u> |
| <u>La</u> | <u>10.50%</u> |
| <u>Ce</u> | <u>21.90%</u> |
| <u>Pr</u> | <u>2.59%</u> |
| <u>Nd</u> | <u>9.85%</u> |
| <u>Sm</u> | <u>1.80%</u> |
| <u>Eu</u> | <u>0.15%</u> |
| <u>Gd</u> | <u>1.48%</u> |
| <u>Tb</u> | <u>0.20%</u> |
| <u>Dy</u> | <u>1.19%</u> |
| <u>Ho</u> | <u>0.22%</u> |
| <u>Er</u> | <u>0.66%</u> |
| <u>Tm</u> | <u>0.09%</u> |
| <u>Yb</u> | <u>0.54%</u> |
| <u>Lu</u> | <u>0.08%</u> |
| <u>Y</u> | <u>7.43%</u> |
| **<u>TREO</u>** | **<u>58.68%</u>** |

---

------

<sup>11</sup> Source: Iluka Resources, February 2022 (link)

<sup>12</sup> Source: ruidow.com at June 29, 2022, Iluka Resources <br>

<u>Response No. 9</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>17.1.6</u> <u>Opinion of Qualified Person</u>

<u>The QP is comfortable that the current environmental plans to address environmental compliance, permitting, and local communities as reported in this TRS are adequate, in the opinion of the QP.</u>

------

<u>Responses No. 10 and No. 11</u>

#### Annual cash flow summary (indicated and inferred resources)

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ****<br>| **Units** | **LOM Total** | | | | | | | | | | | | | | |
| **Calendar Year** |  |  | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033** | **2034** | **2035** | **2036** |
| **Operation Year** |  |  | **0** | **1** | **2** | **3** | **4** | **5** | **6** | **7** | **8** | **9** | **10** | **11** | **12** | **13** |
| **Saleable Mineral Products Recovered** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | kt | **2388.0** | - | - | 94.0 | 124.4 | 112.2 | 79.0 | 89.0 | 91.4 | 83.4 | 78.8 | 76.3 | 79.2 | 88.4 | 95.3 |
| &nbsp;&nbsp;&nbsp; Rutile | kt | 417.5 | - | - | 16.4 | 21.7 | 19.6 | 13.8 | 15.6 | 16.0 | 14.6 | 13.8 | 13.3 | 13.9 | 15.5 | 16.7 |
| &nbsp;&nbsp;&nbsp; Monazite | kt | 116.2 | - | - | 4.7 | 6.0 | 5.5 | 3.9 | 4.4 | 4.2 | 3.7 | 3.5 | 3.5 | 3.7 | 4.3 | 4.8 |
| &nbsp;&nbsp;&nbsp; Zircon Premium | kt | 559.6 | - | - | 22.1 | 29.1 | 26.3 | 18.6 | 20.9 | 21.2 | 19.2 | 18.1 | 17.7 | 18.4 | 20.7 | 22.5 |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | kt | 402.4 | - | - | 15.9 | 20.9 | 18.9 | 13.4 | 15.1 | 15.3 | 13.8 | 13.0 | 12.7 | 13.3 | 14.9 | 16.2 |
| **Mineral Product Prices** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | US$/t |  | $284.2 | $298.7 | $313.3 | $327.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 |
| &nbsp;&nbsp;&nbsp; Rutile | US$/t |  | $1440.5 | $1488.8 | $1566.4 | $1585.3 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 |
| &nbsp;&nbsp;&nbsp; Monazite | US$/t |  | $13062.2 | $14296.3 | $15013.1 | $14708.0 | $14546.1 | $14296.5 | $14723.1 | $15426.6 | $16264.3 | $16928.3 | $17423.5 | $17919.0 | $18414.9 | $18414.9 |
| &nbsp;&nbsp;&nbsp; Zircon Premium | US$/t |  | $2376.3 | $2429.1 | $2398.6 | $2309.5 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | US$/t |  | $1069.3 | $1093.1 | $1079.4 | $1039.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 |
| **Gross Revenue** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | US$M | $742.3 | - | - | $29.5 | $40.8 | $34.8 | $24.5 | $27.6 | $28.3 | $25.8 | $24.4 | $23.6 | $24.5 | $27.4 | $29.5 |
| &nbsp;&nbsp;&nbsp; Rutile | US$M | $547.3 | - | - | $25.8 | $34.5 | $25.2 | $17.8 | $20.0 | $20.5 | $18.7 | $17.7 | $17.1 | $17.8 | $19.9 | $21.4 |
| &nbsp;&nbsp;&nbsp; Monazite | US$M | $**2016.0** | - | - | $70.0 | $88.0 | $79.9 | $56.4 | $65.3 | $65.3 | $60.2 | $59.2 | $60.7 | $66.9 | $79.4 | $88.3 |
| &nbsp;&nbsp;&nbsp; Zircon Premium | US$M | $978.1 | - | - | $53.1 | $67.2 | $44.4 | $31.4 | $35.3 | $35.8 | $32.4 | $30.6 | $29.8 | $31.1 | $35.0 | $37.9 |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | US$M | $316.5 | - | - | $17.2 | $21.7 | $14.4 | $10.2 | $11.4 | $11.6 | $10.5 | $9.9 | $9.6 | $10.1 | $11.3 | $12.3 |
| **Total Gross Revenue** | **US$M** | $**4600.1** | **-** | **-** | $195.4 | $252.2 | $198.7 | $140.2 | $159.6 | $161.5 | $147.7 | $141.8 | $140.9 | $150.5 | $173.0 | $189.4 |
| **Operating Costs** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Mining | US$M | $644.9 | - | - | $22.8 | $25.6 | $33.2 | $24.0 | $22.7 | $32.0 | $28.5 | $27.3 | $25.8 | $25.0 | $25.3 | $26.1 |

---

------

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Wet Processing Plant | US$M | $242.2 | - | - | $9.8 | $9.7 | $9.8 | $9.8 | $9.8 | $9.6 | $9.5 | $9.5 | $9.6 | $9.6 | $9.8 | $9.8 |
| &nbsp;&nbsp;&nbsp; Slimes Tailings Disposal | US$M | $153.3 | - | - | $6.7 | $6.1 | $6.5 | $6.4 | $6.6 | $5.9 | $5.4 | $5.4 | $5.6 | $5.8 | $6.3 | $6.8 |
| &nbsp;&nbsp;&nbsp; Mineral Separation Plant | US$M | $310.2 | - | - | $15.0 | $15.9 | $14.2 | $10.6 | $11.5 | $12.4 | $11.9 | $11.8 | $11.6 | $11.6 | $11.9 | $11.9 |
| &nbsp;&nbsp;&nbsp; General & Administration | US$M | $173.1 | - | - | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 |
| &nbsp;&nbsp;&nbsp; Landowner Royalties | US$M | $100.4 | - | - | $9.8 | $12.6 | $9.9 | $1.4 | - | $4.0 | $5.9 | $4.3 | $2.1 | $6.8 | - | - |
| &nbsp;&nbsp;&nbsp; Transport and Logistics Costs | US$M | $53.4 | - |  | $2.1 | $2.8 | $2.5 | $1.8 | $2.0 | $1.9 | $1.7 | $1.6 | $1.6 | $1.7 | $2.0 | $2.2 |
| **Total Operating Costs** | **US$M** | $**1677.6** | **-** | **-** | $73.2 | $79.6 | $83.1 | $60.9 | $59.6 | $72.8 | $69.9 | $66.9 | $63.1 | $67.4 | $62.2 | $63.8 |
| **Operating Income before Taxes** | **US$M** | $**2922.6** | **-** | **-** | $122.3 | $172.6 | $115.6 | $79.2 | $100.0 | $88.7 | $77.8 | $74.9 | $77.7 | $83.0 | $110.8 | $125.6 |
| **Capital Costs** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Development Capital | US$M | $237.2 | $42.2 | $186.3 | $8.7 | - | - | - | - | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp; Sustaining Capital, incl. Ongoing Reclamation | US$M | $188.3 | - | - | - | - | $16.1 | - | $2.0 | $14.2 | - | - | $14.2 | $34.6 | - | $14.2 |
| &nbsp;&nbsp;&nbsp; Final Closing/Reclamation Capital | US$M | $10.3 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| **Total Capital Costs** | **US$M** | $435.7 | $42.2 | $186.3 | $8.7 | **-** | $16.1 | **-** | $2.0 | $14.2 | **-** | **-** | $14.2 | $34.6 | **-** | $14.2 |
| Depreciation | US$M | $435.7 | - | - | $67.8 | $48.4 | $39.2 | $28.0 | $20.5 | $18.7 | $13.4 | $9.6 | $10.9 | $17.6 | $12.6 | $13.0 |
| Depletion | US$M | $823.3 | - | - | $27.2 | $46.0 | $35.4 | $25.6 | $29.9 | $29.5 | $26.6 | $25.7 | $25.7 | $26.5 | $31.7 | $34.6 |
| Income Taxes | US$M | $434.7 | - | - | $7.1 | $20.4 | $10.7 | $6.7 | $13.0 | $10.6 | $9.9 | $10.4 | $10.7 | $10.2 | $17.4 | $20.4 |
| Change in Working Capital | US$M | **-** | - | - | $12.4 | $4.3 | $(4.4) | $(3.5) | $1.7 | $(0.6) | $(1.1) | $(0.3) | $0.2 | $0.4 | $2.3 | $1.3 |
| **After Tax Free Cash Flow** | **US$M** | $**2052.1** | $**(42.2)** | $**(186.3)** | $94.0 | $147.9 | $93.2 | $76.0 | $83.4 | $64.6 | $69.0 | $64.8 | $52.7 | $37.9 | $91.1 | $89.8 |

---

------

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ****<br>| **Units** | **LOM Total** | | | | | | | | | | | | | | |
| **Calendar Year** |  |  | **2037** | **2038** | **2039** | **2040** | **2041** | **2042** | **2043** | **2044** | **2045** | **2046** | **2047** | **2048** | **2049** | **2050** |
| **Operation Year** |  |  | **14** | **15** | **16** | **17** | **18** | **19** | **20** | **21** | **22** | **23** | **24** | **25** | **26** | **27** |
| **Saleable Mineral Products Recovered** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | kt | **2388.0** | 90.2 | 111.4 | 89.7 | 97.0 | 101.3 | 98.9 | 96.4 | 98.4 | 96.7 | 90.0 | 94.9 | 109.0 | 122.7 | - |
| &nbsp;&nbsp;&nbsp; Rutile | kt | 417.5 | 15.8 | 19.5 | 15.7 | 16.9 | 17.7 | 17.3 | 16.9 | 17.2 | 16.9 | 15.7 | 16.6 | 19.1 | 21.4 | - |
| &nbsp;&nbsp;&nbsp; Monazite | kt | 116.2 | 4.6 | 5.6 | 4.1 | 4.5 | 4.9 | 4.8 | 4.7 | 4.8 | 4.9 | 4.4 | 4.7 | 5.6 | 6.3 | - |
| &nbsp;&nbsp;&nbsp; Zircon Premium | kt | 559.6 | 21.3 | 26.3 | 20.8 | 22.6 | 23.7 | 23.2 | 22.6 | 23.1 | 22.9 | 21.1 | 22.3 | 25.8 | 29.0 | - |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | kt | 402.4 | 15.3 | 18.9 | 15.0 | 16.2 | 17.0 | 16.7 | 16.3 | 16.6 | 16.4 | 15.2 | 16.0 | 18.5 | 20.9 | - |
| **Mineral Product Prices** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | US$/t |  | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 |
| &nbsp;&nbsp;&nbsp; Rutile | US$/t |  | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 |
| &nbsp;&nbsp;&nbsp; Monazite | US$/t |  | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 |
| &nbsp;&nbsp;&nbsp; Zircon Premium | US$/t |  | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | US$/t |  | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 |
| **Gross Revenue** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | US$M | $742.3 | $27.9 | $34.5 | $27.8 | $30.1 | $31.4 | $30.6 | $29.9 | $30.5 | $30.0 | $27.9 | $29.4 | $33.8 | $38.0 | - |
| &nbsp;&nbsp;&nbsp; Rutile | US$M | $547.3 | $20.3 | $25.0 | $20.1 | $21.8 | $22.7 | $22.2 | $21.6 | $22.1 | $21.7 | $20.2 | $21.3 | $24.5 | $27.5 | - |
| &nbsp;&nbsp;&nbsp; Monazite | US$M | $**2016.0** | $84.3 | $104.0 | $75.7 | $83.8 | $89.5 | $88.2 | $86.6 | $89.1 | $90.3 | $81.4 | $85.7 | $102.2 | $115.6 | - |
| &nbsp;&nbsp;&nbsp; Zircon Premium | US$M | $978.1 | $36.0 | $44.4 | $35.1 | $38.1 | $40.0 | $39.1 | $38.1 | $39.0 | $38.6 | $35.7 | $37.6 | $43.5 | $49.0 | - |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | US$M | $316.5 | $11.6 | $14.4 | $11.4 | $12.3 | $12.9 | $12.6 | $12.3 | $12.6 | $12.5 | $11.5 | $12.2 | $14.1 | $15.9 | - |
| **Total Gross Revenue** | **US$M** | $**4600.1** | $180.1 | $222.3 | $170.1 | $186.0 | $196.5 | $192.7 | $188.5 | $193.2 | $193.1 | $176.6 | $186.2 | $218.0 | $246.0 | **-** |
| **Operating Costs** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Mining | US$M | $644.9 | $27.0 | $20.2 | $32.3 | $31.0 | $30.2 | $25.8 | $25.3 | $25.5 | $23.9 | $22.5 | $24.1 | $19.2 | $19.8 | - |
| &nbsp;&nbsp;&nbsp; Wet Processing Plant | US$M | $242.2 | $9.8 | $9.8 | $9.4 | $9.5 | $9.5 | $9.5 | $9.6 | $9.7 | $9.8 | $9.8 | $9.8 | $9.8 | $9.8 | - |
| &nbsp;&nbsp;&nbsp; Slimes Tailings Disposal | US$M | $153.3 | $7.0 | $6.8 | $4.8 | $5.4 | $5.5 | $5.4 | $5.7 | $6.2 | $6.8 | $6.5 | $6.3 | $6.4 | $6.6 | - |

---

------

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Mineral Separation Plant | US$M | $310.2 | $11.4 | $12.8 | $12.1 | $12.4 | $12.6 | $12.5 | $12.2 | $12.2 | $11.6 | $11.6 | $12.1 | $12.8 | $13.8 | - |
| &nbsp;&nbsp;&nbsp; General & Administration | US$M | $173.1 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | - |
| &nbsp;&nbsp;&nbsp; Landowner Royalties | US$M | $100.4 | - | $2.2 | - | - | - | - | - | - | - | $8.8 | $9.3 | $10.9 | $12.3 | - |
| &nbsp;&nbsp;&nbsp; Transport and Logistics Costs | US$M | $53.4 | $2.1 | $2.6 | $1.9 | $2.1 | $2.2 | $2.2 | $2.2 | $2.2 | $2.3 | $2.0 | $2.1 | $2.6 | $2.9 | - |
| **Total Operating Costs** | **US$M** | $**1677.6** | $64.1 | $61.3 | $67.4 | $67.3 | $67.0 | $62.4 | $61.9 | $62.7 | $61.3 | $68.3 | $70.7 | $68.6 | $72.0 | **-** |
| **Operating Income before Taxes** | **US$M** | $**2922.6** | $116.0 | $160.9 | $102.7 | $118.7 | $129.5 | $130.3 | $126.6 | $130.6 | $131.8 | $108.4 | $115.5 | $149.4 | $174.0 | **-** |
| **Capital Costs** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Development Capital | US$M | $237.2 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp; Sustaining Capital, incl. Ongoing Reclamation | US$M | $188.3 | $2.0 | - | $14.2 | - | - | $14.2 | - | $34.6 | $14.2 | - | - | $14.2 | - | - |
| &nbsp;&nbsp;&nbsp; Final Closing/Reclamation Capital | US$M | $10.3 | - | - | - | - | - | - | - | - | - | - | - | - | $10.3 | - |
| **Total Capital Costs** | **US$M** | $435.7 | $2.0 | **-** | $14.2 | **-** | **-** | $14.2 | **-** | $34.6 | $14.2 | **-** | **-** | $14.2 | $10.3 | **-** |
| Depreciation | US$M | $435.7 | $9.9 | $7.1 | $9.1 | $6.5 | $4.6 | $7.4 | $5.3 | $13.6 | $13.8 | $9.8 | $7.0 | $9.1 | $32.9 | - |
| Depletion | US$M | $823.3 | $32.9 | $40.2 | $31.4 | $34.2 | $36.1 | $35.3 | $34.6 | $35.4 | $35.3 | $30.7 | $32.4 | $37.8 | $42.6 | - |
| Income Taxes | US$M | $434.7 | $19.1 | $29.7 | $16.3 | $20.4 | $23.2 | $22.9 | $22.7 | $21.3 | $21.6 | $17.7 | $19.9 | $26.8 | $25.7 | - |
| Change in Working Capital | US$M | - | $(0.8) | $3.5 | $(4.4) | $1.3 | $0.9 | $(0.1) | $(0.3) | $0.3 | $0.0 | $(2.0) | $0.7 | $2.6 | $2.1 | $(16.5) |
| **After Tax Free Cash Flow** | **US$M** | $**2052.1** | $95.7 | $127.7 | $76.7 | $97.0 | $105.4 | $93.4 | $104.3 | $74.3 | $95.9 | $92.6 | $95.0 | $105.8 | $135.9 | $16.5 |

---

------

#### Annual cash flow summary (indicated resources only)

---

| | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ****<br>| **Units** | **LOM Total** | | | | | | | | | | | | | | | | | |
| **Calendar Year** |  |  | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033** | **2034** | **2035** | **2036** | **2037** | **2038** | **2039** |
| **Operation Year** |  |  | **0** | **1** | **2** | **3** | **4** | **5** | **6** | **7** | **8** | **9** | **10** | **11** | **12** | **13** | **14** | **15** | **16** |
| **Saleable Mineral Products**<br> **Recovered** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | kt | **1293.0** | - | - | 94.0 | 124.4 | 112.2 | 79.0 | 89.0 | 91.4 | 83.4 | 78.8 | 76.3 | 79.2 | 88.4 | 95.3 | 90.2 | 111.4 | - |
| &nbsp;&nbsp;&nbsp; Rutile | kt | 226.1 | - | - | 16.4 | 21.7 | 19.6 | 13.8 | 15.6 | 16.0 | 14.6 | 13.8 | 13.3 | 13.9 | 15.5 | 16.7 | 15.8 | 19.5 | - |
| &nbsp;&nbsp;&nbsp; Monazite | kt | 62.5 | - | - | 4.7 | 6.0 | 5.5 | 3.9 | 4.4 | 4.2 | 3.7 | 3.5 | 3.5 | 3.7 | 4.3 | 4.8 | 4.6 | 5.6 | - |
| &nbsp;&nbsp;&nbsp; Zircon Premium | kt | 302.6 | - | - | 22.1 | 29.1 | 26.3 | 18.6 | 20.9 | 21.2 | 19.2 | 18.1 | 17.7 | 18.4 | 20.7 | 22.5 | 21.3 | 26.3 | - |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | kt | 217.6 | - | - | 15.9 | 20.9 | 18.9 | 13.4 | 15.1 | 15.3 | 13.8 | 13.0 | 12.7 | 13.3 | 14.9 | 16.2 | 15.3 | 18.9 | - |
| **Mineral Product Prices** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | US$/t |  | $284.2 | $298.7 | $313.3 | $327.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 | $309.8 |
| &nbsp;&nbsp;&nbsp; Rutile | US$/t |  | $1440.5 | $1488.8 | $1566.4 | $1585.3 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 | $1284.2 |
| &nbsp;&nbsp;&nbsp; Monazite | US$/t |  | $13062.2 | $14296.3 | $15013.1 | $14708.0 | $14546.1 | $14296.5 | $14723.1 | $15426.6 | $16264.3 | $16928.3 | $17423.5 | $17919.0 | $18414.9 | $18414.9 | $18414.9 | $18414.9 | $18414.9 |
| &nbsp;&nbsp;&nbsp; Zircon Premium | US$/t |  | $2376.3 | $2429.1 | $2398.6 | $2309.5 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 | $1687.4 |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | US$/t |  | $1069.3 | $1093.1 | $1079.4 | $1039.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 | $759.3 |
| **Gross Revenue** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Ilmenite | US$M | $403.1 | - | - | $29.5 | $40.8 | $34.8 | $24.5 | $27.6 | $28.3 | $25.8 | $24.4 | $23.6 | $24.5 | $27.4 | $29.5 | $27.9 | $34.5 | - |
| &nbsp;&nbsp;&nbsp; Rutile | US$M | $301.5 | - | - | $25.8 | $34.5 | $25.2 | $17.8 | $20.0 | $20.5 | $18.7 | $17.7 | $17.1 | $17.8 | $19.9 | $21.4 | $20.3 | $25.0 | - |
| &nbsp;&nbsp;&nbsp; Monazite | US$M | $**1027.9** | - | - | $70.0 | $88.0 | $79.9 | $56.4 | $65.3 | $65.3 | $60.2 | $59.2 | $60.7 | $66.9 | $79.4 | $88.3 | $84.3 | $104.0 | - |
| &nbsp;&nbsp;&nbsp; Zircon Premium | US$M | $544.4 | - | - | $53.1 | $67.2 | $44.4 | $31.4 | $35.3 | $35.8 | $32.4 | $30.6 | $29.8 | $31.1 | $35.0 | $37.9 | $36.0 | $44.4 | - |
| &nbsp;&nbsp;&nbsp; Zircon Concentrate | US$M | $176.2 | - | - | $17.2 | $21.7 | $14.4 | $10.2 | $11.4 | $11.6 | $10.5 | $9.9 | $9.6 | $10.1 | $11.3 | $12.3 | $11.6 | $14.4 | - |
| **Total Gross Revenue** | **US$M** | $**2453.1** | **-** | **-** | $195.4 | $252.2 | $198.7 | $140.2 | $159.6 | $161.5 | $147.7 | $141.8 | $140.9 | $150.5 | $173.0 | $189.4 | $180.1 | $222.3 | **-** |
| **Operating Costs** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Mining | US$M | $365.5 | - | - | $22.8 | $25.6 | $33.2 | $24.0 | $22.7 | $32.0 | $28.5 | $27.3 | $25.8 | $25.0 | $25.3 | $26.1 | $27.0 | $20.2 | - |
| &nbsp;&nbsp;&nbsp; Wet Processing Plant | US$M | $136.0 | - | - | $9.8 | $9.7 | $9.8 | $9.8 | $9.8 | $9.6 | $9.5 | $9.5 | $9.6 | $9.6 | $9.8 | $9.8 | $9.8 | $9.8 | - |

---

------

---

| | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Slimes Tailings Disposal | US$M | $87.6 | - | - | $6.7 | $6.1 | $6.5 | $6.4 | $6.6 | $5.9 | $5.4 | $5.4 | $5.6 | $5.8 | $6.3 | $6.8 | $7.0 | $6.8 | - |
| &nbsp;&nbsp;&nbsp; Mineral Separation Plant | US$M | $174.3 | - | - | $15.0 | $15.9 | $14.2 | $10.6 | $11.5 | $12.4 | $11.9 | $11.8 | $11.6 | $11.6 | $11.9 | $11.9 | $11.4 | $12.8 | - |
| &nbsp;&nbsp;&nbsp; General & Administration | US$M | $96.9 | - | - | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | $6.9 | - |
| &nbsp;&nbsp;&nbsp; Landowner Royalties | US$M | $59.0 | - | - | $9.8 | $12.6 | $9.9 | $1.4 | - | $4.0 | $5.9 | $4.3 | $2.1 | $6.8 | - | - | - | $2.2 | - |
| &nbsp;&nbsp;&nbsp; Transport and Logistics Costs | US$M | $28.7 | - |  | $2.1 | $2.8 | $2.5 | $1.8 | $2.0 | $1.9 | $1.7 | $1.6 | $1.6 | $1.7 | $2.0 | $2.2 | $2.1 | $2.6 | - |
| **Total Operating Costs** | **US$M** | $947.9 | **-** | **-** | $73.2 | $79.6 | $83.1 | $60.9 | $59.6 | $72.8 | $69.9 | $66.9 | $63.1 | $67.4 | $62.2 | $63.8 | $64.1 | $61.3 | **-** |
| **Operating Income before Taxes** | **US$M** | $**1505.2** | **-** | **-** | $122.3 | $172.6 | $115.6 | $79.2 | $100.0 | $88.7 | $77.8 | $74.9 | $77.7 | $83.0 | $110.8 | $125.6 | $116.0 | $160.9 | **-** |
| **Capital Costs** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Development Capital | US$M | $237.2 | $42.2 | $186.3 | $8.7 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp; Sustaining Capital, incl. Ongoing<br> Reclamation | US$M | $97.1 | - | - | - | - | $16.1 | - | $2.0 | $14.2 | - | - | $14.2 | $34.6 | - | $14.2 | $2.0 | - | - |
| &nbsp;&nbsp;&nbsp; Final Closing/Reclamation Capital | US$M | $10.3 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | $10.3 | - |
| **Total Capital Costs** | **US$M** | $344.5 | $42.2 | $186.3 | $8.7 | **-** | $16.1 | **-** | $2.0 | $14.2 | **-** | **-** | $14.2 | $34.6 | **-** | $14.2 | $2.0 | $10.3 | **-** |
| Depreciation | US$M | $344.5 | - | - | $67.8 | $48.4 | $39.2 | $28.0 | $20.5 | $18.7 | $13.4 | $9.6 | $10.9 | $17.6 | $12.6 | $13.0 | $9.9 | $34.9 | - |
| Depletion | US$M | $437.6 | - | - | $27.2 | $46.0 | $35.4 | $25.6 | $29.9 | $29.5 | $26.6 | $25.7 | $25.7 | $26.5 | $31.7 | $34.6 | $32.9 | $40.2 | - |
| Income Taxes | US$M | $189.0 | - | - | $7.1 | $20.4 | $10.7 | $6.7 | $13.0 | $10.6 | $9.9 | $10.4 | $10.7 | $10.2 | $17.4 | $20.4 | $19.1 | $22.4 | - |
| Change in Working Capital | US$M | **-** | - | - | $12.4 | $4.3 | $(4.4) | $(3.5) | $1.7 | $(0.6) | $(1.1) | $(0.3) | $0.2 | $0.4 | $2.3 | $1.3 | $(0.8) | $3.5 | $(15.4) |
| **After Tax Free Cash Flow** | **US$M** | $971.7 | $**(42.2)** | $**(186.3)** | $94.0 | $147.9 | $93.2 | $76.0 | $83.4 | $64.6 | $69.0 | $64.8 | $52.7 | $37.9 | $91.1 | $89.8 | $95.7 | $124.8 | $15.4 |

---

------