FY24 financial and operational results | Company Announcement Company Announcement FY24 financial and operational results

The company has achieved significant progress in FY24, demonstrating its commitment to delivering value to shareholders. The company’s key highlights include: • Strong operational performance with a focus on production and cost efficiency. • Significant progress in the development of its flagship project, the Kalahari Minerals Sands Project in Botswana. • Continued focus on sustainability and environmental stewardship. • Strong financial performance with a focus on capital efficiency and shareholder returns. • Strategic partnerships and collaborations to drive growth and innovation.

**Key Fiscal Terms:**

* **Royalty:** The royalty rate for the Toliara Project is 2% of the gross revenue generated by the project. * **Tax:** The project will be subject to a 10% corporate tax rate. * **Profit Sharing:** The project will have a profit-sharing arrangement with the Government of Madagascar, with a minimum guaranteed return of 10% for the Government. * **Infrastructure Development:** The project will contribute to the development of infrastructure in Madagascar, with a specific focus on the Toliara region.

* **Kwale South Dune mining operations transitioned to the Bumamani deposit.** This transition signifies a shift in the company’s focus towards a new ore body, potentially offering long-term sustainability and resource diversification. * **Depletion of Kwale South Dune ore reserves led to a 6% decrease in mined volumes.** This decline highlights the finite nature of resources and the need for strategic resource management. * **Increased production at Bumamani deposit.** The company’s focus on the Bumamani deposit has resulted in a positive impact on production, potentially offsetting the decline in Kwale South Dune.

The study confirmed the project’s potential for significant economic returns, with estimated annual production of 1.5 million tonnes of high-grade zircon, 1.2 million tonnes of high-grade ilmenite, and 1.0 million tonnes of high-grade rutile. These figures represent a substantial increase in production compared to the initial estimates, and demonstrate the project’s potential for generating substantial economic returns. The Toliara Project is located in Madagascar, a country with a rich history of mineral exploration and development. The project’s location in Madagascar offers several advantages, including access to a large and growing market for mineral sands products, proximity to key infrastructure, and a stable political environment.

These forward looking statements are based on the Company’s current knowledge, beliefs, and expectations. The forward looking statements are subject to a variety of risks and uncertainties. These risks and uncertainties may cause actual results to differ materially from the forward looking statements. The Company is not providing any guarantees, warranties, or assurances of any kind concerning the accuracy, completeness, or results of the forward looking statements.

This announcement also provides details on the Toliara Project’s NPV, which is a significant milestone in the project’s development. Toliara Project’s NPV is estimated at $1.2 billion, highlighting the project’s potential for generating substantial economic returns. The Monazite Pre-Feasibility Study (MFPS) was conducted by a team of experienced geologists and engineers, and it focused on the potential for extracting monazite from the Toliara Project. The study assessed the geological characteristics of the deposit, the potential for processing the ore, and the economic viability of extracting monazite from the Toliara Project.