Lucky Jim Mining Company NL has been exploring for silver in the Australian outback since 1 July 2017. On 1 July 2019, Lucky Jim Mining Company NL discovers an economically viable deposit of 3,000,000 ounces of silver in an area of interest called Eureka in the Australian outback after two years of exploration and evaluation in that area. The company spends the sums indicated in the table.

	Eureka
Year ended 30 June 2018
Exploration	$1,200,000
Year ended 30 June 2019
Exploration	$800,000
Evaluation	$3,200,000
Year ended 30 June 2020
Evaluation	zero
Development (Mining plant & equipment)	$4,800,000
Production costs (excluding depreciation and amortisation)	$2,800,000
Administration expenses (period expense)	$2000,000
Selling expenses (period expense)	$600,000
Income tax expense (period expense)	$400,000

Silver mining commences in the year ended 30 June 2020. In that year, 600,000 ounces of silver are extracted, of which 400,000 ounces are sold for $21.00 per ounce, and 200,000 ounces of silver remain on hand at 30 June 2020.

Mining plant and equipment will be worthless when all the silver has been extracted.

The company complies with AASB 6 and carries forward as an asset as much exploration and evaluation expenditure as possible under the rules in AASB 6.

What is the net profit after tax for the year ended 30 June 2020?

Select one:

a. $1,000,000

b. $2,200,000

c. $5,200,000

d. $1,800,000

e. $8,400,000