a few questions.., page-3

55 cents hit!!! Today's action might break that upward channel!!!

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Hi Ramsey,

I will try to explain my take on things. Cash balance at 7th December, $ 5 million. I understand that another $ 3.5 million will be added to this some time soon as a result of the recent sophisticated investor placement. That makes $ 8.5 million or so.

Now plant costs are about $ 30 million which is relatively cheap. An investor presentation was conducted this month and is linked as follows,

http://imagesignal.comsec.com.au/asxdata/20101207/pdf/01130015.pdf

Page 13 shows that within the next month or so debt finance agreements will be finalized. Page 12 states that CCU intend to pay all debt off within 2 years. To give you an idea of profitability, if CCU produce 2.5 million ounces per annum as planned, $ 15 clear profit per ounce leads to a final after tax/cost profit of $ 37.5 million. Keep in mind that current silver spot price is about $ 29 an ounce so assumptions taken are reasonable. Now I assume CCU will ramp up to 2.5 million ounce annual production. Taking all this into account it may well be that CCU might get more sophisticated investor dollars combined with bank loans to finance capital costs. I maybe wrong here. I hope there are no CR's aimed at the common folk. In saying that, to raise $ 15 million through a CR through us at 50 cents would require an additional 30 million shares which would not be a disaster given there are only about 140 million shares on issue at the moment. No begging for cash off us would be a MASSIVE positive signal in my eyes, however not a disaster by any stretch of the imagination if it goes this way.

We will find out soon what they will do. Think it is pretty certain though that the project will get up and running. Will be in the top 15 producers globally when they hit their straps.

GL all holders. My opinion of course.