re: Ann: Presentation To Shareholders - Darw... The other thing...

re: Ann: Presentation To Shareholders - Darw... The other thing I didn't get at first was an accounting leap that is in the latest NUP's presentation page 15.

200Ktpa operation
Cost $65 to $75 per tonne loaded Darwin
FOB $150 to $175

Based on the above, how does one arrive at $15 mil profit per annum?

They must have used the worst case scenario.

If we take $75 per tonne cost, their worst case, and FOB price of $150 (worst case too), profit per tonne = $75, times 200K = $15 mil profit per year. On a conservative basis of 5 times P/E this should be a $75 mil MC company, not $10 mil as it is now.

But we must also take into account repayment on cap expenses as well I guess.

IMO, if we can find a couple of million DSO tonnes at 30% plus grade (note that grades look much better than RUM's), and indeed we can load at Darwin at less than $100 per tonne cost, then we all will be laughing. Of course, there are a few big "if"-s.

In regards to discovery costs, thanks to RUM, we only spent a fraction of their costs as we knew where to look - NUP even used the same lab and similar resource model as RUM. Smart.

Cheers