scoping study results, page-6

NW - rough calcs are good enough at this point.

I would highlight a couple of things:

1. The profit you're highlighting (198-125) is really a Gross Profit. Need Net Profit after Tax (and Interest)

2. I would adjust to 65% (worst case?) of GP to be the Net to use as earnings per share. So Gross Margin of $70/t, producing 250Mt = $17.5M x 65% = NPAT approx $11.375M divided by 326M shares giving 3.5cps of earning.

3. A PE of 10 might be aggressive but SRR has lots of upside with both increasing tonnages and additional projects. Fair to say PE of 8 - 12 might be appropriate so SP 28 - 42cps

4. Where does the $37M come from? (and the $22M to upgrade).
Assume with robust BFS a 70/30 Debt/Equity split - so a CR raising for say $15M early next year??


Just my BoE thoughts. Need Aussie dollar TO GO DOWN!!!