mincor..., page-4

Of the reports i have read so far, the concensus seems to be a peak return on a net cash flow basis of between 15-20cps either in 2004 or 2005...this is based in Ni production averaging 10,000 tonnes, an average Ni price of US$7,000/tn, and AUD/USD 0.60.

I consider these assumption to be fair....


Now, there's a steep fall off in forecast returns from 2006 onwards bacause of lack of reserves at Miitel, Wanaway, and Redross - all average reserves of 3 yrs.

Agressive exploration is being undertaken atm, and will continue... with encouraging results so far... it is woth noting that Miitel was an ex WMC mine... and we know their track record !


So, the serious upside comes if reserves are signifncatly upgraded... allowing production at the current rate beyond 2005...for a few years...

... but even if we were to assume no upgrades, net cash flows of 15-20cps for the next 3 years are more than accpetable,,, esp considering the stocks trading at 30.5c currently...