income and expenses, page-2

Nic

How are we to find out at the end of Jan if MOL are to make a profit on the Iron Ore.

The maiden shipment is not due till this month sometime. Anyone in their right mind would not expect MOL to show a profit on one ship load of ore. If you listened to Derek Fisher at the AGM he expects the Iron Ore to bring in $50mil for at least 5 years. There is every chance that they will discover more, the Geos are out there now.

Mol is in my opinion a long term investment, its average production of moly over a ten year time frame is 12-13mbls on a 10mtn through put.

The stock market is a forward looking market, we cannot predict with any certainty that costs or revenue will be accurate.

Assuming the forward costs and revenues are correct then the molybdenum mine should net $150mil and iron ore $50mil, total $200mil.

For a back of the envelope valuation for MOl is $200mil divided by 400mil shares = 50c the industry average PE is around 15. For this valuation we will give a 20% discount so 40c x 12 = $4-80.

Throw in Hanlongs vision to build a major mining house, they are already looking at other prospects. It is my opinion that MOL can turn into a very good investment.

For those who do not concur with my opinions by all means have your say, but to continually post in the negative is pointless. Buy into a company you believe in and spend your energy on that instead of trying to convert the faithful.

This my view each to his own DYOR