30.3 mt @ 1.70% cueq, page-67

I've pointed this out in the past that using $2/pound for copper is NOT being conservative, it actually has the reverse effect of exaggerating the revenue from by-products. Now they've decided to pay themselves credits for magnetite, it gets even worse.

By way of explanation...

The current prices for the various minerals are:

Cu $4.10/lb Au $1522/oz Co $18/lb Mag $185/t

Which leads to the following price ratios for calculating equivalents

Au:Cu 371:1 Co:Cu 4.4:1 Mag:Cu 45:1

However using CDU's price assumptions:

Cu $2/lb Au $900/oz Mag:Cu $185/t

the ratios are:

Au:Cu 450:1 Co:Cu 13:1 Mag:Cu 93:1

You can see they are exaggerating the value of all the byproducts, and counting Cobalt at almost 300% of its true weight at current prices.

By my calculations

30.3 mt @ 0.94% Cu + 472 ppm Co + 0.19 g/t

=30.3 mt @ 0.94% Cu + (0.0472% * 4.4) Cu (for the cobalt) + (0.00019% * 371) Cu (for the gold)

=30.3 mt @ 1.22% Cu eq.

Also bear in mind the cutoff itself will have been calculated using the same unrealistic assumptions.

FWIW I think the ASX and JORC committee are partly to blame for allowing companies to use any fantasy pricing assumptions they like when making these calculations. The Cu equivalent can be anything they want it to be and is meaningless if the pricing assumptions aren't realistic.