$24.5m ebitda quarterly result! great effort!, page-7

high cost producer

this quarter total operating cost of $37,530,000 divided by production of 539,906 shippable tonnes = $69.51 per tonne

annual meeting presentation of 30/11/09 says JORC reserves of 9.5MT but probable ore reserves of 4.6MT.

Since 30/11/09, probable ore reserve probably dropped to 3.4MT

A Probable Ore Reserve is the economically mineable part of an Indicated Mineral Resource and in some circumstances Measured Mineral Resource.

$112m in accumulated losses and $38m in debt.

3.4MT at US$110 @ 88c exch less AUS$70 per tonne = $187M in cash. No tax payable less $38M in debt = $150m in cash divided by 265m shares = 56 cents maximum per share in value after reserve is mined

But then, iron ore at US$110 per tonne is near the top of the market. At 60% grade, this equates to US$183 per dmtu (using the old pricing).