peak phosphorous, page-9

72mt dividend by 3 = 24 yr mine life.
3mt x $350 = $1050m
minus costs of $100/tonne x 3mt = $300m
Earnings before tax of $750m/yr - 30%tax = $525m
Shares on offer approx 74m tradable (dont kill me over these going off tradable amount on last investor presentation)

$525m/74 = $7.09 eps

So assuming production start july 2010, full yr earnings in june 2011 at current prices EPS of $7.09 sounds pretty good to me.

Trade at PE-
PE 1 = $7.09
PE 2 = $14.18
PE 5 = $35.45
PE 10 = $70.09

A PE of 11.28 will acheive the $80 mark that was brought up on SKY business the other day.

So i do realise that a DSO will benifit the opex but i wont be complaining when SP is trading at even a PE of 1 in 2011. If its not a DSO it will definately add to the 24yr mine life.

So heres to the initail 3mt a yr, hey whats stopping Andrew Drummond ramping up production once we are off and running.

P.S who has some money to lend me so i can buy some more at these levels?