bigstar

Just wondering if you could post an update on recent presentations.

In your June 2010 Valuation your assumptions were:-

Capex1 US $3390m
Capex2 US 4200m (changed from US$2800)
avg FOB price (DSO) = US$63.12/t (changed from US $62.20/t_
avg FOB price (Concentrate/Pellets at +65% Fe) = US $66.30/t
Estimated Production Cost (DSO) = US$19.65/t
Estimated Production Cost (ITabirite Feed Ore) = US $32/t

Debt at interest 10% (assumption fuly debt funds with no dilution)
Tax free holiday for first 10 years (0%) and 15% thereafter
Royalty @ 2.5 %

Given todays BRR presentation, Guilio hinted at some of the key aspects of the DFS as follows:-

Capex1 AUD$4,000
Capex2 (unknown will be announced when DFS announced by 31 March 2011)
avg FOB price (DSO) = AUD $65 (conservative) per tonne
avg FOB price (Concentrate/Pellets at 65% FE unknown until PFS 31/03/11
Estimated PRoduction Cost DSO = AUD$20 to max AUD$25/tonne
Estimated Production Cost Itabirite Feed Ore = (unknown till PFS)

Debt to be financed by 50% equity/debt to Offtake partner/s with dilution
Tax free holiday for first 5 years
Royalty = 2%

Guilio also acknowledged that the cost per tonne of production is between AUD$20 - AUD$25 given all captital expenditure with a very conservative operating profit of AUD$40 - AUD$45 per tonne given cost per tonne of AUD$65.

Guilio also expected a long term (3-5 Years) cost per tonne of AUD$100 which would give a payback period of 2 years.

I know you haven't posted in a while but appreciate your views and would like a brief outlook given latest figures.

Much appreciated.