re: Ann: Positive Wonarah DSO Feasibility Stu... Very sensitive...

re: Ann: Positive Wonarah DSO Feasibility Stu... Very sensitive to exchange rate movements.

Using MAK numbers .........

Market cap of $258m (includes equity injection of $200m)

Assumption = AUD$0.85

Tonnes = 9.443m giving sales of $1662m over 5 years.
Pre tax profit of $142m less tax = $83m over 5 years.
Average after tax NPV = $16.6m/year giving a PE of over 15 times on current SP (258/16.6)


Now applying an exchange rate of AUD$0.90

Tonnes = 9.443m giving sales of $1576m over 5 years.
Pre tax profit of $56m less tax = approx. $25m over 5 years.
Average after tax NPV = $4.9m/year giving a PE of over 52 times on current SP (258/4.9)

I'm not emotionally attached or detached to MAK. Just trying to understand the BFS. A brief what if analysis highlights *possible* downside.

IMO, a bit dangerous to asume $0.85 over 5 years considering the rate was $0.93 a few short weeks back. Just seems that this is very marginal and relying on all the planets aligning for an extended period (5 to 10 years).

Like I said, no emotional attachment either way for me. Just looking at the numbers (and assuming my fingers hit the correct buttons on the calculator).

Good luck to all holders.