Whisky not to belabor the point as there are many was to skin a cat but just to highlight for people who aren’t too familiar with the difference between EBITDA & NPAT, It’s also worth keeping in mind that given the West 45 mine had a short minelife the associated mine asset depreciation rate would have been very high skewing the NPAT figure last year. If they have depreciated most of the equipment over 1-2 years and they manage to extend the West 45 life of mine the amount of depreciation I’d expect would be significantly lower. The only assets that need to be depreciated would be related to the development & mining of the extension areas of West 45.
Far West coming in next qtr life of mine would also be 7 years and a lower rate of depreciation annually.
The turning point in my opinion was the fact that they have got a much better handle on the copper circuit and no reason why they shouldn’t be able to continue this.
RVR Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
