profit margins, page-2

Hi All,

Assume 120,000oz pa
$US750/oz
exchange at USD0.90=AUD1.00
production at USD450/oz after 10-15% efficiencies
462k shares on issue

Profit = 750-450 = USD300/oz = $AU333/oz
Profit = 333x120000 = AUD40k
Profit = 40k/462k = AUD0.087per share
after tax profit at tax rate of 20% = AUD0.07 per share

PER = 6 42 cps
PER = 10 70 cps

does not take into account drilling results and further expansion of Riverina.

PS I hold for the long-term