Great post MJS. I actually think those numbers of yours are...

Great post MJS. I actually think those numbers of yours are quite conservative. Note, the operational margins reported in the half yearly and compare the operational costs in the two most recent quarterly reports. Direct operational costs in the December qtr appear to be only about 14.3% compared to about 20.5% in the September quarter. They refer to margins improving from the Dec06 half to the Dec 07 half from 66% to 73%, but in fact I suspect current margins are far better than 73%, with that number of course being an average across the December half. If you take reduced interest into account, I approximate that the $14.7m of operating surplus for the prior half is quite skewed to the latter months of that half, and I believe the latter months would be close to $2.85m/m in operating surplus, giving a 6 monthly ongoing number closer to $17m. So, perhaps, given your analysis, we are closer to $24m/half or $48m/annum in maintainable net operating surplus, given current prices.