hypothetical economics

This is getting silly - but market does what market does...

Here is how I see it at these prices when taking a conservative and mitigating approach to valuation.

Some food for thought/debate anyway...

Cash vs. MAK Hypothetical

MAK 2008 non-producer
Fully/D M'Cap = $128,000,000

Cash in Bank 2008-2011
(9%pa * $128,000,000) * 3 = $34,560,000
27% ROI

MAK 2008 to 2011 production
1.5MT pa production
$200 p/ton Phosphate

$300,000,000 revenues
$200,000,000 costs (OPEX + CAPEX Debt payments )

$100,000,000 Margin
$80,000,000 Profit ( minus Royalties )

--------------------------------------------
$56,000,000 Free Cash Flow ( minus TAX )

$28,000,000 Distribution (50% Cash Flow)

21%pa Dividend (Of $128,000,000)

$800,000,000 Fully/D M'Cap (PE 8, SP $7.20)
-------------------------------------------

2008-2011 ROI
$7.20 / $1.15 = 6.26 (626%)

626% / 3yrs = 208% YoY
-------------------------------------------

Summary 2008-2011

Cash Return On Capital
(9%pa * $128,000,000) * 3 = $34,560,000
9% YoY Return
27% Total ROI

MAK Share price and Dividend
SP $7.20
PE 8
EPS 50c
Div 25c (3.5%)

MAK Return On Capital
208% YoY Return (3yrs)
626% Total ROI
21% YoY Dividend (Starting 2011)