pfs numbers, page-8

newmember, I think if you read the release you will find the answers to your questions are generally in there.

The price for Fe product is clearly shown and explained. An $18/t premium applied due to low impurities.

The average of 4.4 Mtpa should be achievable and is likely to incorporate a ramp up in the initial year(s) and a fall off in the later couple of years (starting at 3 Mtpa and increasing to 5 Mtpa and falling back to 4 Mtpa). All previous reports suggest a start of 2 Mtpa DSO and 5 Mtpa processed product.

The operating costs are up significantly but likely due to increased fuel prices (projections) and mining strip rate (ie. absence of significant DSO).

The capital cost of 700M is double what Intersuisse published and looks to be due to the significant plant equipment for the pre-concentration stage. It was a surprise that the number was so high but I am hoping that this is the worse case and that the BFS will tidy this up and optimise the plant capital with ore supply from Isthmus etc coming in to help optimise the final plant production capacity. A lot of this should be tackled in the DFS.

The capital is likely to be raised through a variety of means including a cornerstone investor (JTC ? 10 - 20% ?), off take financing and debt. With the low risk of the project it should not be a great problem to finance the project. The final product should be well sought after.

A quick look at the major numbers and a 5.6B revenue over 10 years at 12% and the pricing and production metrics in the PFS will give you a 700M NPV. Nothing wrong here. You will have to look up how to do NPV finance models. Tony is conservative using 12% rate as on other projects I have been involved with have used 8 % and 10 % rates. Using a 10% discount rate adds another 140M to the NPV and likewise using an 8% rate it adds 300M to the NPV.

IMO production end 2013 is realistic.

This is all my own opinions so please DYOR and read the PFS closely.

Guys this is a PFS and whilst some of the numbers were a surprise the positive stand out is that the Project is robust. Even with the high op costs and cap costs the project is a goer. With IMO plenty and plenty of upside.