four kings, page-26

Tonio. Thanks for the correction re that Feb.1st actual date of the funding announcement. Greatly appreciated. The MC on Jan. 31st was 247.6M shares x 17.5c/share = $43.3 MC. A placement of 18.8M shares followed on Feb.22nd. to lift the MC to $45.3. This value-adds 2M to the 'voting machine' resounding 'yes' case return discussed in my post yesterday.

I still see your 'LT Buy' sentiment, which parks you in the 'weighing machine' tent. In this tent you have to think (and talk) in terms of MC (or EV) when discussing intrinsic value. If you don't, you won't be taken seriously. To couch your thinking solely in share price values, you are thinking like a very short term trader. I know, I've been there.

The 'paddock' sale 'weighing machine' counts dollars. Not cheap words. Looking long term beyond the start of production, say 3+ years, based on an output of 3,000 tonnes TREO pa, I see $5/share, which places MC at 459M shares x 5 = MC of $2,295M.

So I foresee a long term wealth creation of $2,250M after the 'Cash is King' funding decision was made.

My request to you is this. Please quantify the long term wealth creation you foresee in your 'no' case scenario. Once you've done that in good faith, we'll see where you are coming from.

Now I'd like you to consider the TREO output level beyond 2016. Gavin Wendt (of Fat Prophets fame) wrote this on page 16 in his Mine Life issue #128 dated 3rd July 2013. " ... the company (NTU) commissioned Tenova to undertake a scoping study for a hydrometallurgical process plant to treat 10,000tpa of Browns Range mineral concentrate ..."

Clearly, originally planned annual output of 3,000tpa might be subject to an upward revision to 10K. That scoping study will be announced later this year.

Under the 10K output scenario, a trusted colleague has constructed a Profit/Loss spreadsheet. The screen grab below shows a share price of $8.98 in cell G24.

My last point concerns the huge NT tenements. They were discussed within the framework of 'Size is King'. The yes/no debate above, in fact, embraces the 'Cash is King' business plan.

I believe Boulder Ridge is as prospective for HREs as Browns Range. Indeed, a year ago, the following quote in the Resources Roadhouse blog. See URL below.

“The area within the latest acquisition has only been lightly explored in the past, but there are historical reports of xenotime mineralisation similar to what we have identified at Browns Range.

http://www.resourcesroadhouse.com.au/_blog/Resources_Roadhouse/post/Northern_Minerals_expands_NT_rare_earth_target_area/

That is why I claim that the paddock sale in Browns Range has to put to the perspective test.