The market is not pleased....But honestly I am looking at the...

The market is not pleased....

But honestly I am looking at the cost profile for 0.6 mtpa, and it looks really good. We are paying/planning to pay $540m US as i recall to get the 19.5 ktpa off the ground; that does include capacity to 125 ktpa expansion in the books. But to get from 125 ktpa to 600 ktpa is the same cost as going from 0 to 125ktpa refining capability and 19.5 ktpa mining. For such a huge jump the estimate is only an additional 500m US or so. A 4-fold increase in refining capacity, and a 50-fold increase in mining capacity, for the same price.

The market I imagine is reacting with displeasure to the statements that Talga does not know how it would fund this venture. I think that is pretty obvious, but apparently this is offensive to some shareholders. This is not a definitive plan.

I for one like the announcement and I look forward to seeing what is possible in the near future. I would like to get the supreme court ruling out of the way in the next 4 months, funding in place for the current expansion, and then start chipping away on this next round of permitting. Hopefully the CRMA will be more helpful for the next round.