Analyst Update, page-400

If only it was that simple. You have utterly ignored several factors including the capital cost, north of $4bn, which would need to be funded and then recovered with a proper return by investors. Then there is the time delay involved in building the plant itself, the need to get actual contracted off takers, not an MOU with Koch going nowhere, plus the issue of credibility. In relation to the last point I mean would you invest $4bn in a venture run by a small scale oil and gas explorer in the Perth Basin with no knowledge or experience in urea, a patchy record as operator - JAWS, WE cost overruns, drilling cock-ups like WE3 , cost and time overruns on Walyering processing plant, to name but a few.

Don’t forget the ludicrous assertion that Strike would take a 30% carry in the venture. So, if you invested $4bn you would get 70% of the venture and carry Strike on 30%. Wow, an effective value transfer of $1.2bn to Strike for having the idea and $5m of cash spent. Sorry, I forgot the $13m on the precinct. $18m spent if you allocate all the precinct cost to Haber.

Even a 5% carry would be a value transfer of $200m. Let me know which group of investors are that philanthropic (sorry, stupid) as boy, have I got a deal for them…..