robust numbers 2

CDU SIMPLIFIED COST STUDY – JORC RESOURCE

INPUTS
PRODUCTION SPAN – AFTER BONANZA YEAR 3.5 TO YEAR 10
PROCESS CAPACITY – 3MT/PA
OUTPUT @ 1.7% - 51,000T CU
CAPEX - $250,000,000
CAPEX LOAN RATE 6% - 10 YEAR TERM
OPEX - $940/T
CU PRICE - $7,500/T
ROYALTY – 4%
TRANSPORT TOWNSVILLE - $50/T
SHIPPING TO CHINA - $15/T
SHARES ISSUED 190,000,000

CASH COSTS P/A
OPEX 51,000T X $940 = $47,940,000
ROYALTY - 4% X 51,000T X $7,500 = $15,300,000
TRANSPORT – 51,000 X $50 = $2,550,000
SHIPPING – 51,000 X $15 = $765,000
DEBT REPAY $33,600,000
TOTAL EXPENSES P/A = $100,155,000

SHARE HOLDER VALUE
GROSS REVENUE – 51,000T X $7,500 = $382,500,000
TOTAL EXPENSES - $100,155,000
TAXABLE INCOME - $282,345,000
INCOME AFTER 30% TAX - $197,640,000
NETT EARNINGS PER SHARE - $1.04

TOTAL SHARE HOLDER VALUE OVER 10 YEAR MINE LIFE
JORC EARNINGS PER SHARE X 6.5 YEARS - $1.04 X 6.5 = $6.76
BONANZA ZONE EARNINGS PER SHARE – 3.5 YEARS X $2.73 = $9.56
TOTAL EARNINGS PER SHARE END YEAR 10 = $16.31
AVERAGE NETT EARNINGS PER SHARE = $1.63

10MTPA EXPANSION PLAN
CAPEX INCREASE REQUIRED
WILL INCREASE OUTPUT TO 170,000T/PA
WILL INCREASE EARNINGS PER SHARE

PLUS UPSIDE FROM CONTINUED RESOURCE DEFINITION INCREASE