countdown to reality 101, page-43

I.P - CDU have released no price metric study to prove that Rocklands can continue past year ten to extract the low grade chaff, they have no EIS approval to extend the mine past year 10 at this stage, they are yet to prove they can commercially mine and sell the cobalt at a profit which will be absolutely critical to future profits past year 10 , given the huge contribution cobalt makes to the CU/EQ calculation , then theres the magnetite that Glencore have stopped selling , how can CDU sell it at profit when the Xmen cant.

Even the MPS report (presumably commissioned by the company) in 2012 has the mine making only a nominal ( NPAT ) profit in years 6,7 and a loss in years 8,910 with a copper price at $3 - they do however say the plant could be upgraded to 5.5mt at the end of year 5 so as long as the approvals were in place they could increase throughput but the expansion cost would reduce the dividend payments.

I also concede much of the delay up to 2011 was caused by the QLD government, Sandfire would not have been able to achieve what they have in the time frame they did if they were located in QLD - ( IMO )