shareholder letter, page-18

Andrew,

I would say your depreciation estimates are too high also, according to the following:

Taxation Ruling TR 2007/3: Income tax: effective life of depreciating assets (applicable from 1 July 2007)

Mineral sand mining
( 08050 )
Aeration assets (including aerators, attritioners, blowers and turbine impeller agitated vessels) 20 years

Classification and gravity separation assets (including centrifuges, cones, cyclones, screw classifiers, spirals and tables) 15 years

Crushing assets (including drum scrubbers) 30 years

Dredges 20 years

Drying assets:
Generally (including flash and fluid bed dryers and fluid bed heaters) 20 years
Rotary dryer kilns 30 years
Dust management assets:
Baghouse filters and extractors 30 years
Cyclones 15 years
Multiclones 20 years

Electrostatic separation assets (including curve plates, electrostatic roll separators, high tension roll separators and screen plates) 20 years

Filtration/Dewatering assets (including candle filter presses, dewatering towers, horizontal belt filters and hydrocyclones) 15 years

Magnetic separation assets (including belt and drum separators, electromagnetic separators, induced roll and rare earth magnetic separators and wet high intensity magnets) 20 years

Materials handling assets (including bins, bucket and conveying elevators, conveyors, feeders, hoppers, loading systems, paddle mixers and tailings stackers) 30 years

Screening assets (including screens and trommels) 15 years

Support assets:
Control systems 10 years
Pipes and pipelines (including valves and fittings):
Generally 20 years
Slurry pipework within processing facility (including slurry pipe to thickener) 10 years
Pumps 20 years
Tanks:
Constant density and thickening 20 years
Generally (including acid leaching and water) 15 years

Thermal reduction assets (including cooler kilns, cooling towers, heat exchangers and reduction kilns) 30 years

Waste gas handling assets:
Afterburners 20 years
Cyclones 15 years
Electrostatic precipitators 30 years
Scrubbers and stacks 20 years