3 cps EBITDA, 130m NTA, 51m MC, page-9

Early1,

Based on an EBITDA of 3.0 cps, the maximum FREE cash flow would be $26m per year. The Capex estimate for the tin circuit was $76m and likely to be reduced. If for arguments sake we reduce this to $40m, then it would take a year and half to fund the tin Capex from cash flows. In my opinion, funding entirely from cash flow is not realistic and a $40m development loan would be more appropriate (giving an interest cover of 4.6x). Obviously, this would be paid down quickly, but a loan would be desirable so that work can be fast tracked once a positive DFS is completed.

Pecs