Projected profit higher than current market cap, page-14

While I'm downloading some graphs, here's one worth looking at.

People have written about the AUD falling and how that will help MZI (Keysbrook). Well, that's a definite. The opex costs are in AUD and with the mining boom ending, there are a lot of crew looking for work, particulary with Iluka throwing the bullet into a heap of Eneabba folk and they wont be able to command any sort of premium, particulary being so close to Perth. Also fuel coming down etc., also helps. But something worth noting within the sand industry is this.

The South African sand mining game is approximately the same size as Australia. But if you look carefully this graph (may highlight) why Rio Titanium spent $2b in South Africa and not Australia. Rio held a very large deposit in the north of WA for decades and relinquished it.



Opex cost in Rand (vs $US) are lowering at a much faster rate than what they are in AUD terms. So even though the TiO2 US$ prices are falling away, they would still be doing okay.

Granted you have possible inflation issues with the dollar falling away, etc. etc. But S.A. isn't a lot different from Australia on that front.

Pep