december 2011 price speculation, page-20

Thanks for your assessment JJ.

For the most part I agree. Neither one of us can guess what the preferred retained earnings will be by the time production starts and even Gus probably doesn't have a firm idea on what it will be. For what i'ts worth we're pretty close in our estimation. My guess was roughly 60%. I was also probably a little over-zealous with my contract price for offtake at $70/pound.

I'd probably be happy backing your estimate at around 1 cent for the first full year or 2. My figure of 4-5 cents after the first few years was based on Karoo going into production on target in 2014 and adding to the U being sold. Unfortunately I don't have good figures on capex and opex for SA so it's just gues work.

Illiquid