how does wayne do it?, page-109

jumpstart, you ask how OW can juggle sales at the expense of the other big backers? I assume you mean Sinosteel and especially NAAIL. The answer is: easy! OW only need to spread the profit from the concentrates by selling some or part of it to Sinosteel and NAAIL. Who can then on-sell for some profit themselves.

In the meantime the big backers decide that it is in CDU's interests to start an extensive drilling program across the tenements to expand the resource, and to start upgrading the plant to deal with the throughput of ore required to make the lower grades economically extractable. Unfortunately this will impact upon CDU's ability to pay much in the way of dividends, but, all the profits are being sunk into optimising Rockland's potential.

Of course, OW will continue to buy at least 60% of the product under the terms of the 20 year agreement. This may be seen as use of shareholders funds to maintain production levels for OW's benefit, but there is always a chance that a large, rich body will be discovered which will be for the benefit of all.

ozblue, yes, it's that word "independent" that matters. That is why the DFS, prepared by Lycopodium who have an excellent reputation for mining engineering, would have been valuable to the banks/instos. And even to some of us. It's not a case of them not wanting to do the work. They accept they don't have the expertise - which is why they take note of what the true experts say. But also the banks and instos want to be able to pin the blame on a third party. They need to be able to do that to protect their bums from angry shareholders complaining about the bank relying on what the directors told them.