why the large bids all day, page-8

re: what is omc worth then do the sums Remember the scoping study released 13 November 2006? All of 3 weeks ago, seems like a year ago already.

They proposed mining 2mtpa at a mining grade of 360-420ppm at 90% recovery, initial operating cash costs of $US23.30/lb.

2mtpa x 380/1,000,000 x 2205 x 90% x ($US65-$US23.30/0.785) = $A80mill per annum EBITDA. This is close to what the scoping study said cash margins of around $US50 mill p.a. at note a U price of only $US55/lb. Check: $US50M x 65/55 /0.77 say = $A77mill.

Allow $10mill p.a. Capex payback, lease of mining equipment etc and 30% tax gives $A50mill pa AT. Apply a PE of say 15 (U sector) indicates a MC as an operator of $A750mill compared to today's MC of $A160mill.

Current FPO's would likely increase from 140 mill say to 180 mill, on MC $750mill indicates $4.20 per share as an operator, ceteris paribus.

So what is a fair discount today for the present quality and size of the inferred resource, position on the timeline to production and general prospects for growth? Certainly more than $1.10 and the Muvuzi crumbs that aren't even buttered with the Uranium.

DYOR - the above could have a mistake, to stimulate discussion only