Ann: Completion of Retail Entitlement Offer and C, page-19

re: Ann: Completion of Retail Entitlement Off... Peter,

You say I am not showing my working, but I went to length to explain it, but then that to you is whining. I did this to be open and honest about why I had changed my mind on taking up the rights.

Fact 1 They state the cost at A$63/MWhe, EXCLUDING financing.

The bulk of that (50?) comes from amortising the capex over 30 years, ie at about 3% pa.

Fact 2 They state CAPEX at A$10.8mm/MWe. One of the presentations around Feb/March stated this. [For comparison a geothermal development in NZ has a capex in the ballpark of A$2.5/MWe].

All capital has a financing cost. At a nominal 10% pa that would be A$1.08mm/MWe pa. If they achieved a 95% load factor that would be ANOTHER A$130/MWhe, ie a total of A$193/MWhe. Any commercial debt or equity provider requires a return on capital.

Now if you don't agree, please put up some facts and/or numbers, rather than trying to dismiss me by accusations of whining, simply telling me to go away, or condescending empty waffle about coal fired power stations.

EL