Mr Strengths,
Personally I feel you are too conservative, I feel $10 per percentage point / per tonne is a more realistic price.
(This premium is growing and will continue to do so).
Also you need to compare 65% "pallet" price not "fines". (current 65% pallet price in China 1,400 RMB = $220.86 USD).
We will not be selling fines. Fines have their own issues when considering blast / arc furnaces, pallets are the premium product.
My dirty maths looks like this:
our product 68% Fe, 6% higher that 62% quoted grade.
6 x $10 (premium) x 3,000,000 tpa = $180,000,000 pre tax.
company tax rate 30%
$180,000,000 x 70% = $126,000,000 post tax. (4c per share post tax)
What we do know from the PFS is we have an "All In Cost" of $54 per tonne.
This covers all mining costs, magnetic separation costs (Beneficiation), delivery to port in china costs.
What we don't know is exactly what grade we will be producing (67.5 - 68.5%).
I have read comments which suggest, there are increases costs in beneficiation from say 62% to 68%.
This is simply not the case.
The best scenario for us is to increase the head grade. Consider, to produce 3 mtpa of 68% magnetite pallets using a ore of approximately 15% magnetite we need to process 13.5 mtpa. This is where I hoped to see NextOre technology come to its own.
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