The announced revised project economics to 5Mt/pa is yet another...

The announced revised project economics to 5Mt/pa is yet another example of a Board that is a "lost" case because the revised project economics are STRATEGICALLY unsound and instill a horrible sense of 'deja vu'.

The IRR analysis presented by URL focuses on "upside", but does not properly address what are CRITICAL "downside" impacts as outlined below.

* The change in the payback period (IRR) is NEGLIGIBLE (ie. only about 5 weeks). This is a KEY determinant that financiers would give weight to, particularly in the current financial conditions viz. priority given to LOW RISK and HIGH IRR projects.

* MANY MORE MILLIONS are being sought at a time when financing is hard to obtain, especially by a "junior" seeking "senior" magnitude debt.

* The need to issue a LOT MORE shares as loan equity to cover these additional planned borrowings. The "bottom line" impact of attendant share price dilution (eg. via mooted mezzanine capital raising) has not been properly presented, and is therefore HIGHLY MISLEADING.

* The consequential "domino" dilution impact on share price that the additional funding (via equity capital raising) would have on Notes Conversion is potentially ALARMING!

* Arising from above dilutions, the net impact in terms of REDUCED dividend returned to shareholders (should Xstrata take up its SEEP and Non SEEP options, or buy the entire Roseby Copper Project).

Accepting that in the prevailing financial conditions and copper futures that funding would not "get up" [aside from ongoing (YEARS late) EIS/EMP holdup saga], this does not detract from the deja vu direction taken by the incumbent Board.

URL Board: Get READY TO GO!