email reply from tony - within 2 hours, page-22

Bunsnz,

You've missed the elephant in the room. The royalties will indeed provide relatively modest sums.

However, the current strategic approach to asset sales, whereby CFE retain of 25% or so, ensures that future cashflow is considerable.

Mayoko, for example, is aiming to have initial production of 5mtpa by mid 2013, possibly ramping to 11mtpa. Capex is 250m. 5mpta generates about $900mpa. Even after subtracting opex, 25% of that is serious coin. Importantly, that's only one project. Marampa and others to come. Add them all up and it's clear the revenue stream looks very healthy yet less the risk of a one project, one resource and one location operations.

Imagine the revenue from 25% of Sappes, Marampa, the Pinnacle assets, Australis, Leichhardt in addition to other projects held and accumulated. Not that grim after all, it would seem. lol