Ann: Company Presentation - RIU Melbourne Resources Round Up, page-4

Thanks Mongrel for your comments.

1. If the company has an operating profit (EBITDA) of A$474M and the break-even cost is A$99/t, doesn't that mean that Royal is assuming a profit margin of $574M / 9.3mtpa = A$51/t. That means a long term average price of A$150/t. Wow!! What does 67.4% Fe sell for these days?

2. The CITIC Pacific and Iron Road projects that Royal compares capital intensity to, have infrastructure provided by them, and Karara has some rail and port infrastructure included - hence Royal should not be saying that they have a low capital intensity compared to these peers. Royal should really only be comparing "mine-only" capital intensity to its peers.