My back of the envelope calculations are a lot more...

My back of the envelope calculations are a lot more optimistic.

In 2010.
Sell 950k lump @ $a130
Sell 1750 fines at $a 100

Gives approx $300m revenue
Costs at $a55 ton gives $150m total costs

Operating Margin $150m

Less loan repayments and interest say $25m ( $100m /6 years plus interest)

Other costs say $20m for further drilling etc

Profit before tax around $100m

Assume 30% tax gives net profit of around $a70m which is close to 90c share.

Most of this is likely to go to funding the magnitite development


my take on the BFS is that it is base case to get production underway, upside from further exploration exists.

regards

PEter