Ann: Sydney RIU Conference Presentation, page-2

I recall a Managing Director arguing that the market were correct. Perfect knowledge

So if something is out of line it is usually as a result of differing risk assessments be it commodity price or capital cost overruns or technical issues with production processes. And a host of others.

I have been following the rare earth story, the market dominance of China, potential new source in Brasil. Certainly strong demand for of products but not the volume of say copper. Small changes in supply could have major impact on price. One of the companies I have been watching is Arafura.

Today Arafura gave a presentation at the Global Metals Mining Conference. The market cap is about $A630 million. The project capital is about $A1.9 billion. The base case NPV at 8% was $A 2.7 billion and an IRR of 17%.

Coda on the other hand has a Market cap of $20 million (2%). Preproduction capital of $331 million (17%) , base case NPV at 7% of $802 million (30%) and an IRR post tax of 28 percent.

Is Coda that much more. risky than Arafura?