More like 4 or 5 for 2007, Stu, while production is at its lowest and the existing continuous mining system is still in use - but for 2008 and beyond, significantly less than that. By 2009, post-tax earnings are forecast by SRK as AUS$63 million = about £25 million.
Worth remembering too, following on from the Magatar piece above, that MTP, now a subsidiary of Caledon, is likely to become the representative in Australia, NZ and Indonesia for the Magatar technology. That means Caledon will be entitled to receive from Magatar "an amount equal to five per cent of the per tonne amount to be charged by Magatar under each mining services contract involving the use of such mining technology at mining operations in Australia, New Zealand and Indonesia other than in respect of sites owned by the Enlarged Group." Many of the underground mines in Australia are longwall operations - but those that aren't might well find Cook a tempting showcase for the Magatar technology. Also, many coal producers are now moving away from underground mining towards open-pittable deposits on grounds of cost - the Magatar technology might help slow down that trend.
Interesting to note that Xstrata's planned development for Cook was a limited longwall operation - 5 times as expensive as the Magatar technology Caledon are going to introduce.
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