12mt jorc, page-11

guys,

playing around with some early figures for the revised 12MT of DSO on Cockatoo..

break it up as per announcement;
9MT @ 68%Fe
3MT @ 60%Fe

assume long term avg IO spot price as ~$100/t for 62%Fe;

$130/t for 68%Fe
$90/t for 60%Fe

assume opex as $52/t as per earlier PLV guidance
assume long term AUD of US$0.95 (3rd qtr GDP will be horrific + negative outlook on interest rates)

9MT @ ($130/t - $52/t) = $78/t/2(JV) = $39/t = $351 (million)/0.95 = $369.5 (million)
assume 6 years to extract = $61.5 (million)/year

3MT @ ($90/t - $52/t) = $38/t/2(JV) = $19/t = $57 (million)/0.95 = $60 (million)
assume 6 years to extract = $10 (million)/year

now surely the $20million enviro bond + necessary working capital (~$25million for PLV's share) against the numbers provided ($71.5million/year pre tax profit from Cockatoo) would allow the company to get access to project finance at reasonable rates!!

the 10 million in extra DSO is a game changer me thinks!

cheers
SuperTim