Message for the downrampers, page-96

Have a look at Nato's post from yesterday...He gave a clear explanation of a 75 Cent price based on a percentage of NPV of the project...Don't overlook the project is technically not fully funded yet...

There are two ways to look at Capex. It can be equity provided or debt while debt comes at a cost with Lindi economics it can be paid back in a 24 month period with an upfront 12-month interest-free period P&I. While the equity component if the CAPEX is too high for the equity markets in Australia it will be unlikely to gain support for a project of extreme CAPEX with perceived sovereign risk. An example of extreme is greater than US$50,000 million...While the Lindi project was well under this figure with outstanding economics...

You could do an equity joint venture where a large portion will be diluted at the Equity level time after then the joint venture will take possibly 50% of the project towards the end...The dilemma to be avoided is what management is about to achieve...

The design advantage of the Lindi project has 2 main advantages high grade and superior flake size combined with a known market constraint of 40,000 tons per annum while the most likely lagging performance will be recovery. Redundancy of plant and possible higher feed grade @23% TGC can mitigate the project in 2 areas by having both plant capacity and resource availability…

Regards Croc (Riding a Wild Bull...) Re rate has not happened yet...