a few items for thought.

Hi All.

Some snippets from reports and research.

Report.With a cost of US$3.3 billion.A 10% reduction to US$2.95bn will add an extra 10c to share price and $200 million to valuation.
A 20% reduction to US$2.62bn will add $400ml to valuation and an extra 21c to share price.

BBY Limited 13/03/09.
Based on operating cost of US$19 tonne for DSO.We have added extra capital expenditure of US$2.0bn in 2019 for the construction of an Itabirite beneficiation plant and increased operating cost to US$37/t from 2020.
Cash operating margin of US3.3billion.Figures do not take into account of Itabirite concentrate or recent price of iron ore.
This is assuming SDL owned 67.5% and Cameroon Government owning 25% stake.
Assumed project is 100% debt funded with no equity dilution with interest rate on full debt balance at 6%pa for the full 20 years LOM.
US$3.28BN valuation A$0.28 sensitivity to Capex.
US$2.62bn A$0.49 " " " .
Sensitivity to iron ore price A$0.28c + 10% A$0.56C AND + 20% A$0.84c.

Capital Investment Partners 9th May 2008 figures.
FOB $50 operation margin = $1 Billion.
" $70 = $1.7 Billion.
" $90 = $2.4 Billion
" $110 = $3.1 Billion.

Criterion March 16th 2007.On potential of West Africa.
West Africa have one advantage,closeness to markets halfway around the world from Port Headland-Europe and North Africa/Middle East.
Sundance Resources:It's as cheap as chips if you put it up against FMG,which is admittedly several years ahead.FMG is planning to start with 45 million tonnes,SDL with 35 million tonnes.
In fact late last year(2006) a broker's report from Perth-based RM Research made the connection between the two.It said that should Sundance be successful in its exploration program and pre-feasibility study over the following 18 months,valuations approaching those of FMG should be possible.FMG was then worth about $2 billion (Pre-mining stage)
Yesterday 15th March 2007.The gulf was wider Sundance is capitalized at $110 million while Andrew Forrest's Grand Design is capitalized at over $5 billion.

Rear Earths are known to be at Metzimevin from reports.
Uranium anomalies of greater than 1.5ppm are known in the North/East of EP92 near granitic rocks.
A lot of Gold is known to be in the Mbalam and Congo area's.

Mbalam Iron Ore deposits are typical Supergene hematite enrichment's from an Archean Banded Iron formation (BIF)protore which has been recrystallised to Ferruginous Quartzite.

I spoke to Don Lewis about an area around Elogo in The Congo.There looked to be good prospects for iron ore in this area going by high hills.I also sent him a map I came across from many years ago .I have over the week-end come across more maps.These maps show A larger Quartzite Ferrugineux area between Souanke and Elogo around the top North/East corner of 2007-363 as it was called.Bigger by far then at Nabeba and just North/West of Elogo.
Quartzite's Ferrugineux is what is found at Avima and Badondo.
There are also two Amphibolites areas around Elogo.

Rail distance and cost of project is not overly expensive or long when compared to some projects.
Rio's Simandou US$6 billion.
BHP- Liberia US$3 billion and 650kl of rail.
Arcelor Mittal US$4 billion+
MMX in Brazil rail 525kls (just Itabirite)
VALE in Brazil over 800kls of rail.

Regards
Westcott.