" In other words the capex is sunk "What you are saying in your...

" In other words the capex is sunk "

What you are saying in your post is that it doesn't matter how much the capex is, because that's already been completed in the past, what counts now are the positive cash flows.

That is a complete load of rubbish the NPV is used to evaluate the amount of risk in a capital expenditure. Your post is full of dribble of course it matters!

You can critique the figures all you like but until you can provide some sort of valid analysis your comments are worth nothing.

And how exactly are the figures pessimistic, if anything they are realistic.

Fact 1
The company is not receiving spot prices for the Mo or WO3. Those calculations used the CURENT SPOT prices and included Bi as well. We don't even know if they are extracting Bi through the treatment plant.

So if anything the revenue is in fact optimistic and not conservative at all as you state.

Fact 2
The company did use an exchange rate of 85. Why don't you check page 13 of the announcement dated 29/10/2007

The higher exchange rate has significant effects on the operating revenue. Again, the revenue is indeed too optimistic

Fact 3
The management of this company made significant mistakes, particularly with the raising of capital at 35 cents. They raised capital before they had the mining lease granted. Consequently, cash burn was high whilst everyone was sitting on their bums waiting for the Queensland Government to sign off. They never went to current holders to raise the defecit. Shareholder's interest and the boards' are cleary not alligned.


Fact 4
Why do you think QOL had to go to BBY for capital. Because no financial institution in their right mind would lend money to these guys. No bankable study was ever done, clearly the financial institutions believed that the project was not profitable. You can argue all you want about the credit turmoils and this was the reason they had to go to the market. If this was the case why wouldn't CITEC lend capital to finish the project off. I don't need to answer that one.

Fact 5
This company is actually transporting the concentrates via truck down to Brisbane to ship out to China. You can wack a bit more of the bottom line, but I suppose you already knew that.

Fact 6
The company repeatedly said they were debt free and had reserves in the bank. Go back on all of the announcements prior to BBY being appointed. All of a sudden the market is completely surprised when they find out that 10 million + is required to be raised.

Nick I have the right to post in here. You can question my motives all you want it does not bother me. I only hope others think twice before investing into this company.

Good luck to you all