NeuRizer Limited announced that it has completed its Initial Bankable Feasibility Study for the NeuRizer Urea Project as expected in quarter 1 2022. NRZ aimed to release the results of the IBFS to the market, however is not permitted to do so in accordance with regulatory requirements and is required to wait until the final bankable feasibilitystudy is completed. NRZ has had this IBFS produced to progress funding of its NRUP.

Typically, the financing period for a project commences upon completion of a final BFS and a Final Investment Decision (FID) being taken by a company. The production of the IBFS allows the funding period to start immediately thereby avoiding the delays typical of such a project. The IBFS will be further refined for final numbers during the remaining period of Front-End Engineering Design (FEED) and updated to produce a final BFS (scheduled for the end of this year).

The IBFS and subsequent final BFS is being conducted independently by NexantECA. NRZ highlights the following strong market fundamentals as confirmed in this IBFS. Global environment: The global long term outlook for urea is positive with regional developments confirming a clear opportunity for the NRUP.

Russia/Ukraine: Russia is the largest supplier of urea worldwide. The current situation is likely to have a long-lasting global impact which only serves to emphasise the need for supply chain security; Security of supply: with the need for supply chain resilience, a domestic producer of ureabecomes extremely attractive; Underlying gas price: the gas price had been rising worldwide even before the Russia/Ukraine war. All urea is made from gas this will continue to have an impact on the price of fertiliser; ESG investing worldwide: as the global shift towards ESG investing becomes more pronounced the pool of funds available for investment in gas becomes ever smaller.

Inevitably this leads to rising prices. The developments in the global environment over the last few years has been resoundingly positive for the NRUP with its own captive gas supply. Strong markets: Australia's urea demand was 2.6 million tonnes in 2020 and is forecast to grow at an average 1.1% per year.

Global urea consumption estimated at 182 million tonnes in 2020 with a forecasted annual growth rate of 1.5% over 30 years. (NexantECA 2022) Sales price: the prices used are based on NexantECA's forecast netback urea prices based on target market sales plan and destination. Further consideration of the impact of higher gas price on NexantECA's urea price forecasts has been considered.

The forecast at the time of preparation, naturally, had not reflected the long-term potential impacts of the Russia-Ukraine situation. Further benefits may be derived from longer term impacts of ESG investing or potential for long-term gas shortages. Both items have only shown their true impacts over the intervening year.

Accordingly, the company believe these forecasts to be extremely conservative. By way of example the January 2022 urea spot price was USD 846 per tonne whereas the forecast was for USD 424 per tonne. Island mode operation: this refers to the designed ability of the plant to operate in "island mode", that is, as all inputs (gas, water, power, CO2) are available on site, the costs are not dependent on external market factors.

They do not change over the life of the project (excepting inflation). This gives the NRUP a significant advantage in terms of reliability and cost but does come at the expense of some capex. The capex includes supporting infrastructures such as water treatment system, closed cooling water and power generation.