This states the sale price of the oxide is around $US90per kg and the metal $110per kg. The agreement with the Korean Investing Partnership includes an offtake agreement of 2,800 tonnes per year of FeNdB.
From my uninformed position, I multiply 2,800 tonnes per year by $US100 per kg to reach $US280m per year in sales revenue. I assume a 50% profit margin and deduce $US140m per year profit. Dividing this by the 140m shares on issue I get $US1 per share. Assuming an earnings multiple of 20 gives me $US20 per share or $A26 per share.
I would appreciate a more informed person explaining where I have made an error in this guess of the value of the offtake agreement.
Ann: Framework Agmt for 20% stake in Dubbo Project and Offtake, page-132
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