potential of caz

Hi All,

Followed this one for a while given the press it used to get over prospects in the Pilbara.

Now it seems that there is a chance that the Yilgarn resource may go ahead.

I know that in the area the EPA really scrutinizes Banded Iron formations, and that CAZ still awaits approval sometime Sept 2010. Correc tme if I am wrong.

But the sums look great unless I have this VERY wrong..

4mt pa @ $100/tonne
turnover $400 mill
cost @$45/t so $180 mill pa
leaves EBITA at $ $220 mill pa
TAX at 30% leaves $154 mill pa
Roughly 100 mill shares currently so $1.54 per share.

Obviously they will need to fund development so you could expect a substantial dilution or debt or joint venture.

But it makes the mind boggle for even at 30% of the above returns and a PE of 5, then the shares could eventually be trading at the end 2011/12 at $2.31.

Comments/ridicule greatfully accepted!

Pelsaert