eqn ebit, page-3

Lash,

since the figures acturtle has referred were prepared, allow a 30-50% increase in capital costs-thanks to dramatic price increases for steel, concrete, wiring., staff costs for construction workers, electricians and other skilled tradesmen.

Also the operating costs would also have jumped significantly -labour costs, chemicals for floatation,power costs, fuel costs for all transportation etc.

The net benefit would have improved since 2003 in spot terms, however the longer term prices are not flash.

According to Macca's trading division, they set a producer two weeks ago at an average price of US$1.15 for a five year term., ie short term good, long term on the forwards not so rosy. It does not necessarily mean that the forward price will accurately reflect the spot price of the day-it has a heavy discount for insurance and volatilty enshrined in its bowels.

Cheers,TAS