In OUR honest opinion..., page-2

Hi Fud007

I'm a long term holder and enthusiast (ramper!?). I think the company has been a little loose with timelines in the past but seem to be doing everything (very) right in the end.

Operating capital aside, it is very hard to see how this business could fail to mature into a producing miner. The figures bandied about are now a little firmer given the cost of plant and the projected production is known, so you can work on costs of under $100m to get the equipment established at 3 sites.

The plants will probably not run at full capacity at the start (from memory, there is a capacity limit at the Geraldton port which is beow the capacity of the plant - this needs confirmation) so I would be thinking of a total 3 milion tpa. From that, you can choose your own average FOB sale price and cost base pmt. Say $100 & $10 repectively. That leaves 3 million x $90 = $270mpa of EBITDA. The I, D, & A will all be negligable in relation to the operation so there will be corporate tax at the current rate leaving around $195m in cash. around 8 times the current mc. This money would be available to distribute to shareholders. That could be dividends of something like 40 cents per share.

From that blue sky calculation, you can see that the sale price at the port can be massively lower that my expectation and still produce a massive profit. Who wouldbe happy with 10 cents pershare dividend?

In short, I'm still excited.