Hi mitis,just been reading some of your numbers. Here are some...

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