Vayama, no worries as I mentioned in my post they were high level numbers . The best info at hand to assess useful life was the life of mine which stands at 11 years at the momment.
Note their accounting policy for plant is currently 10-15 years but again this can change under current accounting standards based on annual useful life assessments(impairment tests).So if we apply the maximum of 15 years depreciation = $4.6m . Some where in between maybe?
With regard to debt on the Convertible notes the terms are at 3%> LIBOR ( rate that banks lend between themselves) calculated on a yearly basis so I would not expect 8% interest to be that far away also considering that in 2006/2007 the rate charged on the bank loan averaged 8.7% ( p38 06/07 Annual Report)).
So on $70m debt( which also maybe greater due to interest being capitalised) $5.6m interest appears about right.
Overall I am comfortable with my previous estimates ( using annual run rates) be it they maybe a little conservative which I would rather be.
cheers
AZC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
