pro's con's & conjecture, page-50

Jantimot
Where are you getting the figures that the project will cost $400 million?

June
Property, plant and equipment $147,247,723
Exploration and evaluation assets $39,168,372
Development costs $90,250,462

Exploration and evaluation don't come under the project costs, every company has them. We have $45 million in cash with another $22 coming from Sino. If all that money was to be added to project and development it will total $304 million.

"The Directors of CuDeco Ltd are pleased to announce that the company has accepted a formal offer for funding through a Credit Facility of $US100 Million (Approx $AUD105 Million). This facility provides the company with access to sufficient capital to complete the mine development work and provide sufficient working capital until commencement of production of its Rocklands Group Copper Project."

I don't see in the announcement where the say some of this will be allocated to Property, plant and equipment. Last year they spent $38 million on mine development costs and I cant see this changing. There is ore on the ROM so they are mining and have stated they can mine 10 years worth of ore for the plant in 6 years so are miles in front when you consider the process plant will not be ready until the middle of next year.

Now for working capital. If costs were say a third of the revenue we would need $150 million in revenue to pay back that $100 million so the working capital required is $50 million. A little simplistic but that's the way I see it.Got to have money to make money.