appropriateness of metal equivs, page-58

Quote ! - "You stated that the difference between $US2.00lb for Copper and $$US3.50lb "makes bugger all difference"

Obviously the copper price is relevant to the real net value & market cap of CDU but maybe not so relevant to the cu eq calculation >

As we only have one current detailed Broker rec available I will quote from it particularly given the fact they had a $25 value on the company in 2006.

NPV with cu at $2.50lb USD - s/p $3.32 AUD

NPV with cu at $4lb USD - s/p $7.16 AUD


The variable parameters associated with the Rocklands project are primarily the copper price and the average mill-feed grade. The copper price is expected to improve in the short term and the average grade of the native copper ore is likely to be higher than the 4.5% assumed in the earnings and NPV cases set out below.Cudeco is currently trading at the Low Case copper price of US$2.50/lb and 2.7x FY14 low case earnings. The Base Case at US$3.00/lb gives an NPV of A$4.58/share and a 1.9x FY14 earnings.

Personaly I would prefer to see a resource statement that says CDU has "X" million tons of copper at "X" cut off grade

X million tons of cobalt at "X" ppm

X million ounces of gold

X million tons of magnetite.


Cudeco using equailavlents

MEASURED, INDICATED AND INFERRED RESOURCE
272.9 Mt @ 0.62% CuEq


AOH - Altona No Cobalt or Magnetite

Total resources at Roseby now stand at 260 million tonnes at 0.6% copper, 0.05g/t gold.