Ann: Phosphate offtake, gold IPOs, UAU IPO, Cu dr, page-30

re: Ann: Phosphate offtake, gold IPOs, UAU IP... hmm sounds nice but without real figures its a bit of a guess. the early figures per share were based on I think (dont quote me) 76 mill shares, went up to 78.5 after the spp in 2009 and then some options in 2010 put us at 79 mill shares this latest spp in 2011 will put us at 86 mill shares. still 1 mill unlisted options @0.35 and 1 mill @ 0.40 both exp march 2011. wouldn't call that excessive dilution.

from the website:

I liked the bagged figures of cost $100 tone and retail @ $1100 a tone.(profit $200 mill) although the big orders probably fit into the model of cost $50 a tone and wholesale @ $300-$400 a tone.(profit $50 mill) not sure if they can pull it out quick enough to supply the original 20,000tpa to retail to local farmers as well as 200,000tpa to bulk ship. if they can then that could look like:

$50 mill profit from bulk shipping
plus
$20 mill profit from retail bagged (although the website only puts that at $5-$6 mill profit so that could be wholesale which would be a shame I think they might reconsider that if they are getting cash from the bulk shipments then why not go retail for the rest. they needed the local market before so probably had a low price. now they should be able to set a better price).

they did mention that cost per tone would be less through economies of scale. but they might be giving a bulk discount? and of course there should be a premium for organic supplies.

until we see a signed deal we won't know for sure, but I for one am extremely happy with the latest developments and looking forward to an exiting year with:

geolsec fertiliser

winchester magnesium

melrose gold

lugansk gold

uranium australia

australian copper

and of course KORAB having access to all the other stuff that might get found at all these different locations except basically gold and uranium.

still on the edge of my seat with so many things that need to happen but soon can sit back and relax.....