king report, page-3

Glenso, Using the King report nett cumulative average profit now after adding 9.5% price rise 1 April 2007 would be around $585 million AUD for first 10 years. In my calculations I used $500 million therefore 70% of that equates to repayments of $350 million in years 1 to 3 then 40% $200 million over next 12 years and loan would be repayed over 15 years. That would leave $150 million in years 1 to 3 and $300 million over next 12 years for dividends. Years 16 to 25 should be debt free and all available free cashflow paid in dividends $500 million. With the loan now being interest free it would have to have a big effect on profitability but the down side of that is you give away 50% of project for a saving of around $2 billion of interest. This is all only my rough calculations and should not be taken as advice in any way.