bmg litigation update, page-36

I agree with your comments 5hareholder - both in terms of questions post BMG and future profits.

Assuming the current JV with a 20% free carried interest to CAP and 20mtpa, then CAP’s 20% share would be 4Mtpa. The PFS assumes life of mine price of US$87/t@69% Fe (seems very conservative based on current prices) and a cost of US$63 – US$68. That’s a margin of US$20 times 4mtpa or US$80,000,000 per annum for CAP’s share (yes, before tax and admin costs etc).

At start up production of 5mtpa then CAP’s 20% share is 1mtpa. At current prices of US$161.81, that’s a margin of more than US$90 times 1mtpa or US$90,000,000 per annum for CAP’s share.

With approximately 100 million shares on issue and no dilution as a result of having a free carried interest, its not hard to estimate the annual dividend could be more than the current share price.

I appreciate that there are still many hurdles to get over and that production is a few years off – but with management who seem to keep reducing or eliminating the hurdles I am very comfortable with my shareholding in CAP.

(Source of above prices and costs is presentation to SAREIC, see announcement on 1 May 2012)