The key points made in the later report by MPS on CuDeco Limited(CDU), development of Rocklands copper deposit are:
* 3mtpa mine production to commence in late 2013.
* Total capital costs of A$250m fully equity funded.
* >3% Cueq head grade to produce - 90000tpa for initial 3-4 years.
* initial mining and processing costs * FY14 projected earning at current prices >A$1.60/share(PER<2.0x)
* Debt free project to ensure high dividend payout ratio (>80%)
8 CDU undervalued vs base case target of A$4.58/share (~A$1.7bn).
It would seem that the low profit/loss figures you listed for later years will need extra output to bolster revenue I suppose this is why magnetite will play in important part when the higher grades are exhausted.
As I understand it CuDeco Management have increased output and magnetite production under review at the present time.
cheers,
Max
CDU Price at posting:
$1.78 Sentiment: Buy Disclosure: Held