new broker report - hartleys, page-3

Haven't been following this one that closely, but how much did they spent on this project to get it to the point that Rothschilds have managed to get someone (we assume a Chinese group) to buy 70% of it?? Am I right in thinking that for FY09 they spent A$52.3m, the majority (A$41.6m) off which, was for this magnetite project?? + plus some expenditure from the previous year. Assuming a purchase price of 150m, I suppose its a return on investment of something substantially less than <180% plus a retaining interest of 30%. But that is not really that sexy, and its not really a return that inspires one to invest in mining companies. Not only that, on-going costs to retain that 30% over-time will inevitably chew up that $150m and other capital in no time at all. Magnetite is big cookies.

Better off with DSO (in the short to medium term) I think...