re: revised dividends. selby,agm's cash flow will be in the...

re: revised dividends. selby,

agm's cash flow will be in the order of $225 million at the current ni spot price.

900,000 tonnes per annum at a cost of $30 per tonne to produce 9000 tonnes of nickel.

9000 tonnes of nickel is $386 million (au$19.50 per lb)

$30 per tonne brings a cost of $27 million per annum. lets double it to $54 million in costs.

lets assume exploration expenditure of $12 million per annum.

deduct tax.

cash flow would be in the vicinity of $225 million per annum.

why grow thru acquisition in a bull market when organic growth thru further exploration in tasmania which is very low cost can reap a greater reward with considerably less exposure to any softening in nickel prices.

dividends and further discoveris such as saxon and increases to the avebury resource will have a very very positive impact on the growth of agm. it wont come from paying a premium to acquire other companies high cost, high risk problems.

enjoy the dividends.

cheers