*1 tonnes = 2?204.62262 pounds*Kates incentive agreement is to...

*1 tonnes = 2?204.62262 pounds
*Kates incentive agreement is to produce 30,000 tonnes each month for 3 months. This is roughly 66,138,678.60
pounds (30,000 * 2204.62262) which is at a price of US 58 cents per pound equivelent to US$38,360,433 per month. 51% is attibutable to URA = US$19,563,821 per month or roughly US$235 million a year. Assuming that we can turn 15% of this into profit means that we would recieve $32.25 million is profit per year. THIS IS REFLECTING ONLY 15% OF TOTAL REVENUE AS PROFIT!!

Now lets look at the financing affect:
Current Market Capitalisation = 7 million

Total Potential Shares on Issue:
Current ordinary shares on issue
= 285,125,188
Issue to AAM for a 51% interest in 7 manganese projects
= 80,000,000
1 for 2 rights issue at 2.8 cents
= 142,562,594
1 million loan potential shares issued to underwriter covertable at 2.8 cents per share if there is no shortfall available from rights issue
= 35,714,286
Total shares on issue post rights issue and payment for 51% in managanese assets = 543,402,068

Total Options on Issue:
Current Tradable Options on Issue (exercisable at 8 cents)
= 89,750,709
Free options attached to rights issue for shareholders (exercisable at 5 cents)
= 142,562,594
Free options for underwriter for 1 million dollar drawndown loan (exercisable at 5 cents and 1.5 times shares issued to underwriter)
= 53,571,429
Non-exchange tradable options
= 5,000,000
Total Options on issue post rights issue and payment for 51% in manganese assets = 290,884,732

Total Undiluted shares on issue Post Rights issue
= 543,402,068
Total Diluted Shares on issue post rights issue
= 834,286,799

Assuming a shareprice @3 cents
Undiluted Market Cap = $16,302,062.03
Diluted Market Cap = $25,028,603.98

Assuming a shareprice @4 cents
Undiluted Market Cap = $21,736,082.71
Diluted Market Cap = $33,371,471.97

Assuming a shareprice @5 cents
Undiluted Market Cap = $27,170,103.39
Diluted Market Cap = $41,714,339.96

Assuming a shareprice @6 cents
Undiluted Market Cap = $32,604,124.06
Diluted Market Cap = $50,057,207.96

Assuming a shareprice @7 cents
Undiluted Market Cap = $38,038,144.74
Diluted Market Cap = $58,400,075.95

Assuming a shareprice @8 cents
Undiluted Market Cap = $43,472,165.42
Diluted Market Cap = $66,742,943.94

Assuming a shareprice @9 cents
Undiluted Market Cap = $48,906,186.09
Diluted Market Cap = $75,085,811.94

Assuming a shareprice @10 cents
Undiluted Market Cap = $54,340,206.77
Diluted Market Cap = $83,428,679.93

Now keep in mind that we could potentially be earning a profit of $32.25 million based on my profit margin forecast.

Lets now look at the Cash Balance:
Cash at the end of last quarter
= 618,000
Loan drawn down from underwriter (payable either from short fall however, calculations above assume that there is no short fall available)
= $1,000,000
Rights issue intending to raise
= $4.56 million
Total Cash Available
= 6.178 million less 25% for error + administration costs = $4.63 million after the rights issue

Potential cashflow from exercised options
= 89,750,709 * 0.08 = $7,180,056.72
= 142,562,594 * 0.05 = $7,128,129.70
= 53,571,429 * 0.05 = $2,678,571.43
= Total $16,986,757.85

I feel that my figures are pretty conservative, post your opinions.