chinese very very keen on sundance!50mtpa!, page-23

More realistically;

2014, producing 50mtpa at $120 with a cost of $22 will give about $4.9b profit, with a JV partner (50% project stake) gives SDL $2.45b, lets take 10% of that and give it to the governments leaves SDL with $2.205b PROFIT

Lets say a P/E ratio of say just 6 - gives a market cap of $13.23 billion

Consider out of the $4.5b CAPEX only 70% is debt, of which only 50% is SDLs liability so that's $1.575b in debt which CAN be paid off with the $2.205b profit that is SDLs share, leaving SDL with some cash in the bank of close to $600m in the first year of production, lets throw $500 out for other expenses, admin, interest, taxes etc...

So we have a company that CAN be debt free after one year of production, have a market cap of $13.23 billion (equivalent to a share price of about $4.50) and a cash account of $100m after only 1 year of production...

Hanglong.. STEP DOWN..

Figures assume;
iron ore price of $120/t
CAPEX of $4.5b, OPEX of $22
P/E ratio of 6
50% entitlement of JV partner for $1.5b
Debt funding of $3b