shareholder letter, page-6

I have just recieved confirmation from Jim Wilton that term pre-interest and repayment revenue is effectively EBITDA...

Therefore profitability could look like this:

1. RE debt : there are convertible notes on issue worth approx $23m so total debt is around $70m including the bank debt. $70m is also the approx cost of the plant & equip.

2. Deduct Interest( say 8%pa) and depreciation ( 11 year life) of approx $5.6m +$6.5m = say $12m

3. NPAT = $21M-$12M = $9M approx ( no tax payable due to tax losses)

4. EPS $9M/290M= 3.1 cps approx

5. Once tax becomes payable = EPS 2.2cps based on the above numbers.

(*The convertible notes are repayable (2010/11) at the discretion of AZC or at conversion to equity at 15% disc to VWAP).

cheers