Ann: Ore Supply Agreement with Glencore, page-62

Brett - Im sure you have read the June 2012 MPS buy rec ? if not I would think an Email to Max would gain you a copy ( key points below ) on a best case scenario using the bulk tests grade you can get 30% of throughput for the first 5 years of NCU and super gene ore.

Personally I would run with the 96mt .45% copper using the .4% cut off global resource to work out what excess capacity may be available to go to the X men for processing - I think the 270mt global CU EQ at .2 % cut off needs to be totally discounted at a copper price of $3 USD

I would think that the ore going to Glencore would be in the 1% to 2% max cu content as lower grade sulfide feed ? interested to hear shadows or Whale watchers thoughts on this.


KEY POINTS 3mpta mine production to commence in late 2013
Total capital costs of A$250m fully equity funded
>3% Cueq head grade to produce ~90,000tpa for initial 3-4 years Initial mining and processing costs

A$1.60/share (PER<2.0x) Debt free project to ensure high dividend payout ratio (>80%).
CDU undervalued vs base case target of A$4.58/share (~A$1.7bn).