Ann: Carnallite Scoping Study Completed & ENAMCO , page-30

re: Ann: Carnallite Scoping Study Completed &... I agree with you that IRR should not be used to compare projects.

ELM's PFS is highly detailed and not far off a BFS. Check out the detail yourself.

The increased cash cost for doing infrastructure deals was withheld on the latest 1 hour verbal presentation (on ELM's website) by Macpherson as they are still working on deals but factors such as period of the loan will affect it. He did say that because ELM's OPEX will be a low $79 per tonne, we have sufficient room to move and still be very competitive.

Why do it? Obviously to absorb as much of the initial capital requirements as possible to minimize dilution. Risks would be relatively low as they are talking to major international infrastructure groups (operators and infrastructure funds) to build on and operate the infrastructure.

Why wouldn't you use the current ROC tax assumptions?

I never stated that STB's CAPEX is too high.

Not sure who you are referring to about talking up the price of Potash? What I am saying is that STB will be vulnerable to Potash prices dropping due to their very high OPEX. Nothing silly about that. Then there's royalties and transportation that hasn't been factored in.

How are STB's mine walls going to stand up after one shower of rain. Doesn't salt dissolve in water?