euroz initiating coverage, page-9

$4 per share $600M mc @ $8t = 75Mt

Let's just say we get 100Mt and apply the sector average of $12t

100 * 12 = $1.2B / 150 = $8 share price

Euroz are being ultra conservative. Earnings could be EBIT os somewhere in the order $120-$160M

Also if you think UMC should have the sector average applied to it think about it again.....It's all about infrastructure access..

"A recent site trip confi rmed the excellent infrastructure with both RIO and BHP rail lines within 10-15km
of the tenements and the main highway traversing through its ground.
�� A desktop study looking at a 2mtpa DSO road haulage, a 5mtpa DSO rail and 10mtpa rail scenario and
mine gate sales has been completed and will be announced in the back of the initial resource"

UMC are likely to have a higher sector average applied to it once JORC is out.

If some are wondering about the credentials of Euroz at picking stocks.....especially WA resource stocks then you should read this then from last wed's West Australian paper