query: is mbarga nabeba viable?, page-8

Hi Guys,

I do understand that there are more additional costs to the $21.20/t we keep seeing in the presentations.

Here are some additional costs that comes to my mind and mentioned;
shipping: $10-15/t
Rail:probably $5-10/t
Administration: who knows, could be $10m/year
Royalty after first 5 years.
Accumulated interest prior to initial production.
However i can't come up with $134/t
My capital and cost intensity comes to around $60-80/t only.

We also have to understand that phase 1 only accounts for 30 mt/annum, that is 300mt total in the first phase, so i guess the cost will be high.
If you we extend phase 1 to 13-15 years then the cost cost be reduced dramatically.

I hope if the management can clear up these numbers rather that throwing them around.

regards

bouhr