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homework ? financials newcastle ears plant, page-3

  1. 1,858 Posts.
    It's worth noting that when those figures were produced, they hadn't intended to produce the reduced iron in briquette form. They managed to get the Newcastle machine cheaper than usual, but needs to be factored into the capex of future plants.

    In saying that, they may also get a premium for product in that form, so it may add to revenue as well.

    I think it was mentioned that if a plant was built at Pt Kembla it would need to to be 2x Newcastle throughput. Capital $/tpd will be less than 2x, so even though the briquette machine will add to original capex expectations, ROI could still be similar to Newcastle.
 
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