Ann: BMO Global Metals & Mining Conference Presentation, page-2

On HEDGING ALONE:

"73,878t of copper forwards at US$9,242/t or US$4.19/lb"

COGS - .91c (this is higher than it really is)

EBIT = 73,878t * 2204 (conversion to pounds) * (4.19 - 0.91 i.e. net margin ) = 534m PROFIT or 734m AUD

Thats a derivative product and therefore it as good as cash in the bank given the only unknown is production, which is proven

So based on the value of this hedge alone, we are only paying 2.4b market cap - 734m = 1.67b for the company

Meanwhile there is 324m US leaving 1.2b as the price for all these assets that product 193m cashflow a year.

With the dividend policy in place, this is a cash cow that represents a good shareholder return along with one of the safest places to park money in what looks to be a 1 -2 year bear market.

Oh and ofcourse i forgot all the Zinc, gold and other by products ..

Market has got this completely wrong and who ever sold because of Goldman should really consider what these brokers do... They commentate on the results, never predict..