Freehill General Discussion, page-41

It's only at 31% because our net worth is so low.

Consider the fact that we are aiming at cranking out 1Mt of ore per year in future on YB alone. Let's do a theoretical and assume the worst and say that the iron ore price goes down and our fe grade is not the best, and say that we will sell that 1Mt at $50 US a tonne (we sold our low fe grade ore from the trial mining for $80 US so this is a very conservative figure).

Let's then take a conservative guess at what our profit margin might be. Let's say 10% for simplicity's sake (most miners today are doing much better than that). That's $5mil profit in a single year. In the last half year accounts we saw we didn't even have 5mil in liabilities (although we probably have about that now). The fact that we just secured investment also means we won't be borrowing money any time soon, so the debt won't be skyrocketing in the near future either.

Oh and don't forget, that figure comes from YB alone. I didn't even consider Arenas or the potential copper and gold resource, and let's also not forget, that is USD not AUD. So let's be honest, we should be making a lot more than that.

So basically, taking a very conservative guess, we will surely make a profit of much more than 5mil a year operating at 'full swing', and that debt will be paid off rather quickly. Now it might take a while from now to get to 'full swing', but the fact that the drill program for YB and the copper resource is just about ready to rock means it may be sooner than people think. I believe within a couple years.

So I ask you all to again ask yourselves, do you really think this is a less than 1.5 cent stock??

GLTAH, DYOR.