Had someone else check my financial model that produced a...

Had someone else check my financial model that produced a dazzling result.

My intentional conservative total cost of production figure of $30 tonne is considered way too large.

Ive pulled it back to $20 which is more in line with real live data. Capex of $750M was also considered too high but I'm not changing that.

At current Mo prices, year 2 to year 6 net cashflow would be about $A400 million PER ANNUM. My model is based on stripping the high grade core out (55mt @ 0.24%MOS2) and then not caring too much after that.

However, the project like many others is highly sensitive to the Moly price. Slash it from $US33 to $US20 and the net annual cashflow is reduced to about $100M. That's still pretty good loose change.

As you can see there is real substance under this project and which will see corporate deals done (we hope soon).

As for the drilling, I can't see that doing jack for the share price unless they magicly produce bigger grades than RIO but I can't see how.

Nope, for mine, any upward move will be purely corporate deal driven.