positive feasibility out, page-7

the numbers look a little dodgy to me

the Free cash flow of US$478 million after tax from the first 10 years of operations at US$110/t is fine

this is US$48m pa

but increasing the iron ore price by $10/t does not increase your annual cash flow to $71m pa

without interest, the cash flow after tax at $120/t is around $61m

capex is hefty at $162m

opex is on the high side at $66/t

next announcement will probably be a financing/script/offtake agreement

i was only a very small shareholder here and am out for now

i think the current price is fair and a hold for those with long term inclinations

based on RHM financing themselves on 50:50 debt:equity, I see RHM worth $2.56 come production on $120/t revenue, 5% royalty, 16 year depreciation, 7.5% interest, 30% tax, 150m shares on issue and PE ratio x 8

keen to see the next announcement

regards