dividends, page-2

Hi Scanspeak,
I think you are thinking the same way as me, but I have the following

First 10 years Production (using JORC figures)

30Mt @ 1.7% CuEq

=> 3Mtpa CuEq @ 1.7% for 10 years

3Mt x 1.7% = 51,000t CuEq

Revenue
51,000t x $9000/t = $459M

PLUS

pyrite/cobalt concentrates, which are anticipated to be approx. 200,000 tonnes per annum. On current prices the margin on the pyrite/cobalt alone is approx. $US805 per tonne.

= $161M

TOTAL REVENUE = $620M


A costings study carried out by Lycopodium and AMDAD reported a process and treatment cost of $14.07 per tonne and a mining cost of $3.40 per tonne respectively for the processing. So say strip ratio of 2.5:1 means

3.5*3 = 10.5 MT mined = 3.4 x 10.5 = $35.7M
Processing is 3MT x 14.07 = $42.2M
Total = $77.9M

Say $40M other expenses (finance payback, exploration, admin etc)

$620M - $77.9M - $40M = $502.1M

Subtract 30% tax and 2.5% royalties
502.1M x 0.675 = $338.9M


$338.9M / 200M shares => $1.69 per share dividend

PE of 10 => $16.9 share-price

Who knows what the share price will hit, considering todays upgrade nets a red day on the market, but dividend have potential.

Just my simple workings :-)