potential of big c, page-2

Huge,

Great post.

I do not know where in PNG the Golpu deposit is? If it is in the mountains, the earthworks, and roads and infrastructure etc are many many times more than C.

The capex of Golpu, at $4.8B is very large. Even if C was $3B, OZL has some things going it's way with cash. $660m on the bal sheet, significant reduction in strip ratio in 2015 to approx 1:1 for the open pit that will lower mining costs substantially, even though the u/g will be more expensive, so FCF could be quite a bit from 2015 to 2018, which could feed straight into C capex. OZL may need to borrow $1B or do a cap raising, or (my preference) a combination of both to fund the balance. The other alternative is to do a JV with RXM on Hillside and use the cash flow from both mines to fund C at a slower rate.

I am not yet in the same camp as you on C potentially being a Tier 1 asset. It is certainly a Tier 2 asset, (as is P Hill). IMO, C would need to double in size in resource to be considered a Tier 1 asset. (Mind you, OZL is certainly growing the resource with every drill hole!!)

HT1