A1M: General Comments, page-362

Interesting how the AC commentary has gone from 20,000t last March to more than 20,000t last May to 30,000t last week at the presentation.

AISC last qtr was AUD $4.84lb. Copper is now roughly AUD $6.20lb. Last qtr the AIC average realised copper price AUD $5.48. In very simple terms our margin has more than doubled with the increased copper price.

Now say the copper price goes to AUD $7. ie around USD $4.60. 12,500t X 1,000 = 12,500,000 kgs of copper. That x 2.2 = 27,500,000lbs of copper.

At AUD $7 per lb and current AISC of AUD $4.84 then the net margin would be roughly $2 x 27,500,000. Makes roughly $50,000,000 a year profit.

My point is that if the copper price goes roughly 15% from here then we aren't going to need very much, if any, debt funding at all over the proposed and highlighted 2 year period.