noi, page-12

HW - I disagree with your remark MAK has no hope of borrowing from the banks in this climate.
A perusal of the North American Presentation of 16/3 gives some very interesting info so bear with me for a moment ( it has all been done to death on this site previously )::
461 mt JORC compliant inferred resource ( only tested 15% of the known system )
Potential customers from (including) Northern China,India & Nth & Sth America
Product samples prepared & being delivered now
Very favourable composition ( low impurities )
Opex $A150 tonne FOB Darwin
Direct Capital costs $61m plus sales income lag $39m plus $7m contingency.
Therefore using US$250 tonne FOB sale price, cash flow projection:
2009/10 -$100m, 2010/11 $400m approx.,2011/12 $600m
I believe they will have no worries about borrowing $60m on an interest only basis medium term, say 3yrs ( there is still a lot of private capital sources in the USA )and $45m working capital yearly reviews X by say 3yrs ( Australian banks, consortium if necessary, but highly unlikely) once they have firm contracts in hand, but first will come T/O agreements.
If I was 20yrs younger, I would be betting the house on this as if it comes to fruition ( and why not?)then 12 mths sp $5, 2yrs $10-15 and then the sky is the limit.
Thats my op and holes can be picked in it,but my glass is half full, (cider,brown or black ale, and red red wine)