stomtajora, page-23

Extract from todays announcement:

"Based on a usage of 125,000 tones to produce 10,000 tones of lithium carbonate, 3,000 tonnes of lithium chloride and 4,000 tonnes of lithium hydroxide per year we have achieved a cost saving of US$15.0 million per annum on a projected operational expenditure in 2009/10 of USD$35million. For clarity, had we not achieved this saving, our operational expenditure would have been USD$50.0m."

Extract from Phil's reply earlier in year:

"At present our total opex estimate is $35m, 17,000 tonnes of product at 6,500 tonne comes in at 110.5m, 80,000 tonne of potash at 14m so that gives us an EBITDA of $124m plus SB at say 3.5m tonnes is EBIT 21m so back of the envelop total EBIT is $110, so on 1.1 billion shares thats 10 cents a share - US, pick a multiple and you got the story."

Can't say whether this was factored already into share price, but it loks like Phil had been factoring it into his projections.

Anyway, great announcement, gives more confidence in his projections and that it is all systems go for ADY.


Regards

SP