financial review, page-36

Yep Elroy, it's the fundamentals pulling us up.

When the SPP was announced we were hopefully looking for 1.45/lb to hold and costs sub 90/lb. With interest and principal repayment eating another 40 or so c/lb, we were paying 15 cents on a nearterm 15 c/lb surplus.

Now at 175 and costs below 60, we have instead a surplus in the order of 75 c/lb (ignoring the ST hedging).

The investment story has simply transformed, from looking at nearterm survival and holding for a poc upturn, to a situation with highly attractive current earning, and plenty of bluesky regardless of poc upturn.

Easy to see 40 cps if poc holds, and imho to see 50 cps once we've consolidated our cash inflow a little, refinanced from scrouge, and made our annual principal payment.

Some profit taking atm imho, but the market is seeing a much more compelling investment at 30 than it did at 15 such a short time ago.

EL