bfs , jv delays and where i see this going., page-36

Flyboy,

We should all start to appreciate that there are multiple mine development scenarios here.

Undoubdetly Garatau can be developed on a stand alone basis and be a top 5 PGM producer and possibly that is the fastest way to proceed.On Garatua alone and current JV arrangement, NKP is worth a multiple of what it is today, no arguement on that.

I however do not see that for Xstrata the target is a quick start, but maximising shareholder return over time. If these returns can be improved by delaying mine development 6-12 months to see what synergies can come from Tubatse or reducing payback by mining the shallow deposits first, I see that the key decision takers may well prefer that.

It is a great situation to be in, if we are arguing about how best the deposits will be mined to maximise shareholder returns, as with most other PGM investments it would be an arguement as to whether the projects are viable.

BR
Max