sdl financials, page-5

Hi pythagerous

Its certainly a good topic to bring up,as we all wait for some news on offtake/jv/finance etc.
These estimates will be proven once we get a better idea of the new ore price benchmarks.Spot price for hg fines atm are approx $55t for %61fe,and i reckon you could guesstimate a contract figure of say $60/65t imo.
If you use the figures that sdl have given us;

Approx 2.3bt itabirite@%38fe with a recovery weight of %44 after benefication,you get approx 1.0bt hg pellet feed grading say %67fe,not sure what price you get for pellets but lets assume $60t.

Approx 215mt dso@%61 + say another 200mt dso@%62 from nabeeba [i think this is conservative]gives us 415mt dso@%61/62fe.
With an operating margin of say$40/44 for the dso its heady stuff if you have an output of 35/50mtpa.At these rates total payback would only take a few years.
As westcott has stated only %3 of total area has been looked at and if his conservative estimates on future discoveries are only half correct this will be one of the great cash cows in iron ore.Who knows maybe the dividends could be a reality.
Look,its just a number crunching exercise and i'm learning as i go[more than happy to be proven wrong]would love some feedback on this.
Bring on the news.
Cheers.cb