foreman of the jury, page-22

Gecko has decided to speak of numbers and entertain his knockers with some fiscal musings.

In todays terms, RES’s cash costs once it goes into production should be about USD 30 tonne. Spot selling price is about $US 80 tonne.

At full production they could mine about 4,000,000 pa

Discount that by 60% for contingencies – quality of coal, depreciation, amortization etc price adjustments etc…

profit = (80-30)*4,000,000*0.4 = $80,000,000 p.a.

Figure after capital raising there are 300million shares

EPS = 80,000,000/300,000,000 =0.267

PE ratio for coal companies is about 10

Therefore, theoretically at full production of 4,000,000 tpa, share price is worth $2.67