facts, page-8

Hi mitis,

just been reading some of your numbers. Here are some facts you should consider.

1. Not all the coal is extractable. Currently RIV have and 79% mining yield. (Page 2 of Half Yearly)

2. In the half year to december 2007, they dug out 444,000 tonnes. (Page 2)

3. The gross profit from this totalled:
6.7 million. (Page 6)

Therefore the earnings per tonne = $15.
Assuming all other costs to be ZERO (directors don't pay themselves, no 'admin' fees to the mozambique government, and so forth)...
After 30% tax this $15 becomes $10.

In your calculation you are saying it is around $20.


Plus ... what if the price of coal drops by $15??? Then the profit is wiped out. Maybe the coal price will never drop back.


Joel