Ann: Hartleys Updates Research Report on Danakali-DNK.AX, page-4

Well that's down from 420 million new shares issued in Hartley's December 2015 report so an improvement and heading in the right direction.

"Hartleys Limited Danakali Ltd 1 December 2015 Page 4 of 6
VALUATION
We assume startup capex of ~A$420m. Given the proposed financing structure, we assume 70% debt funding and 30% equity funding. We assume that 100% of cash flows are paid to the third party debt and then loan by DNK to the Government (~A$60m) until the expansion in 2023, after which we assume DNK receives 50% of free cash flow (~$100m pa DNK share). Given the very long mine life, the NPV is strong despite it being several years before DNK receives free cash flow. We assume DNK issues ~420m new shares."