number crunching

Hello all

I have crunched some numbers very quickly this afternoon to gain a reasonable expectation of what cash flow and profit we can expect from AGO as we ramp up to 12 mtpa.

It certainly isn't an exact science, however, I have taken the major assumptions (cash costs, royalties, depreciation) from AGO presentations.

Suffice to say, AGO have very quickly moved to 8mtpa. 10 mtpa follows by June 2013, shortly followed by 12 mtpa by December 2013.

I don't think many have really caught on yet.

Remember this doesn't factor, ramping up to 15 mtpa by 2015 and 46 mtpa by 2017. This upside is priced at zero in my opinion.

The crown jewel is port capacity of 46 mtpa.

Anyway this is only a first crack and I'd happily take any points on board.

Cheers,
C