View from a new holder, page-30

Rolla and Cosmo,

"Exactly. We are around 3 years from the project being on production and therefore three years from FARs estimate of the value of the project once on production.So you discount that figure back by 10% per year to end up at todays figure of approximately 32% less than US$540m."

Exactly (almost). That explains today's market cap, along with project risk. Looking forward, in 3 years time as the project de-risks we can see an uplift in value, including the discount effect. BTW 10% discount rate applied over 3 years on a monthly basis works out to be about a 26% discount.

On the interest piece, I would think that that was included in the $540m number since they specifically include financing costs.

The point still stands that we should expect to see a major uplift in the market cap over the next 3 years as the project de-risks (and with some discount effect if you like), which is what happens. Look at COE over the last 3 years as they brought their Sole project to fruition - the SP has go from 15c to close to 60c.

I hope the New Year helps your disposition towards FAR.