Hi Nidrac,Legend claim in their initial resource statement for...

Hi Nidrac,

Legend claim in their initial resource statement for D-Tree North on 14 May 09 that the opex for the DSO operation is estimated at A$100-125 per tonne FOB at the Port of Townsville.

http://www.lgdi.net/resources/i/docs/Form%208K/8K_090514.pdf

The Paradise North DSO operation which they are focussing on now has thicker intersections than D-Tree and will likely be lower opex according to the announcement on 24/9/09.

However, in the same ann for D-Tree they claim an estimated capex of A$10-15 million. This seems like an extraordinarily low figure, especially as the road infrastructure will need to be seriously upgraded to get to the highway. So I'm not so sure these are accurate figures in the absence of a feasibility study.

It's an interesting comparison to make between Legend and MAK. With a similar amount of ordinary shares the sp can be indicative of valuation between the two. While MAK has a bigger and better resource, proven up so far, it would appear that the main difference is Legend having Soros and IFFCO as major shareholders and the recent strategic alliance with the Chinese Wengfu.

With MAK soon to get the bulk samples to a number of prospective buyers, we are going the different route of maintaining 100% ownership and securing offtakes once rock phosphate is back in demand and better priced relative to our opex. This will take longer to express itself in market confidence, but longer term I think it's a better route than having a major like Wengfu, who no doubt will extract their share of value out of Legends resource.