itabirite is good, page-4

Hi (squidd)


All I can say is the figures were from Metal Bulletin Research. The World's leading independent provider of market analysis for the global metals and mining industry.
That was their wording,not mine.

What price and what year do you want to use?
I have seen higher prices being given for the future. I saw one today of $300 for DSO. I can only try to give a fair and perhaps rough idea on price,the same as you can do.
Come on Squidd give your price in 5 or 6 years time.
We can only go by present prices and give an approximate future price. I did say that was a March 2012 report.

Going by this report the September/October low's would be a good point for a low price as DSO was down to around $86 per tonne I believe. When previously was DSO that low?
Even at that date in time the Concentrate and Pellet Feed for 65 and 66% Fe would have been about $120/tonne.
Sundance are expecting to be producing 66 to 68% Fe,so a higher price again then the $120 low price. Pellet prices were $16 more at $136/tonne than the Concentrate price,that for 65 and 66% Fe.

Low of $120 for Concentrate and $136 for Pellet Feed.
Add say $10/tonne for 66 and 68% Fe as in SDL's case,= $130/tonne = $90/t FOB Profit. That is $1,150,000,000 on 35 Million tonnes per year.
Take the 50 Million tonnes they have been talking about and we get,$1,500,000,000 or $1.5 Billion.

High of $176 for Concentrate and $191 for Pellet feed,again that was for 65 and 66% Fe. Take your pick on prices.

High mark average for month on Concentrate of $174.55 lets say FOB profit of $130/tonne = $1,550,000,000 on 35 Million/tonnes.
On 50 Million/tonnes = $2.5 Billion.

Pellet Feed at $191/tonne = say $150 FOB Profit = $5.250,000,000 at 35 million /tpa

At 50 Million/tpa Pellet Feed $150 FOB Profit = $7.5 Billion.

Feeling tired so check the figures.

Regards
Westcott.