Potential US$87.2m in initial capex savings

In November 2016, Euromax embarked on a contract mining tender process (in contrast to the owner-operator model envisaged in its DFS). The tender focused on the first seven years of mine life and, based on indicative offers received to date, holds out the prospect of a c US$42.2m capex saving in return for a US$0.17/t, or (estimated) US$42.9m life-of-mine, increase in (undiscounted) mining operating costs and adds C$0.05, or 5.7%, to our EOX valuation on a like-for-like basis (see Exhibit 3).