chart nearing crossover, page-4

Yes, I acknowledge that red.

However... 2 things:

1) The opex figures are VERY conservative, and factor in June/July diesel prices which are off ~15-20% atm, and don't look like going up in a hurry due to the GFC.

2) The opex figures quoted are pre-railway line extension (or slurry pipeline?) from Tennant Creek to Wonarah, which will reduce opex significantly. Only need 2-3yrs at 3mtpa at USD$150/tonne RP and AUD$150/tonne opex to secure enough balance sheet strength to get one of these options financed.

I know that it costs about AUD ~$8/tonne (round trip) to truck Iron Ore ~80kms in the Pilbara, and about AUD ~$10/tonne (round trip) to truck it 120kms in the Pilbara, greater efficiencies at distance at all that.

I would est. that trucking the RP to Tennant Creek would cost approx. $20/tonne, however, the expense is in the double handling of the RP, i.e. loading the trucks at Wonarah, unloading the trucks @ TC, loading the rail wagons at TC, unloading at Darwin port.

With a rail extension from TC to Wonarah, the saving could be as high as AUD$40/tonne (removing the double handling and substituting the trucking costs for cheaper rail haulage).

Even if that brought the opex down to AUD$110/tonne, even at AUDUSD 0.75, that is opex of USD ~$82/tonne... even the MD of Mosaic thinks there is a snowflakes chance in hell of RP prices ever seeing those levels again!