Ann: Tombador Project Pre-Feasibility Study and Ore Reserves, page-4

0.5x EstimatedCash Flow?? 100% Prospective Dividend Yield??

What am Imissing, this company looks ridiculously cheap.

At Iron Oreprices of US$ 100/t, TI1 expected to make EBITDA A$ 54m/y as per this LOMreport

· Thisis equivalent to A$45/t (calculated as EBITDA A$ 54m / Ann. Output 1.2mt)

At today’s spot price of US$ 160/t, TI1 should therefore make A$152m in EBITDA. Calculated asfollows:

· Incrementalrevenue per tonne: (160-100)/0.73 = A$82/t

· Incrementalrevenue should flow straight through to bottom line, new EBITDA/t: 82+45 = A$ 127/t

· Total annual EBITDA: 127/t x 1.2mt = A$ 152m

Current EV:A$ 68m (mkt cap less cash)

· Expectedto pay out majority of cash as a dividend

· Companyhas so far demonstrated solid execution

Somebody please help me outhere! How is Tombador trading at less than half the cash it should generate in the comingyear? Are there some other costs or reputational overhangs that I am missing and does anyone know what the company is doing to communicate its valuation to the market?