abu dabbab felspar

When Abu Dabbab is up and running at 2 MTPA, it will be producing 1.5 MTPA of Felspar.

Does anyone know what price this will be sold for? Are their any other significant costs we will need to take into account?

1. Hoodlees and Brennan in their April 07 Research Report referred to: "1.0mtpa of ceramic grade feldspar is potentially worth $10m"

This implies a price of only US$10 per tonne and only selling 1.0 M pa of the 1.5 M produced pa a the mine;

2. GIP has previously signed a HOA for the sale of 2.65MT over 5 years. This would only amount to 0.53 MT pa, leaving an additional 1.0 mtpa still to be sold;

3. I have seen estimates by posters on this sit of up to US$18 per tonne. Is the US$10 per tonne out of date;

4. Furthermore, unlike the tantalum and tin, if these prices are in the right ball park, then the felspar is rather bulky for unit of value. Hence transport costs for the felspar may need to be considered. Perhaps the sale prices quoted are net of transport costs.

I am doing a NPV calculation based on estimated cash flows from the Abu Dabbab project. While the project is still profitable without the felspar, the assumptions I make about volume and price for the felspar have a significant effect on the valuation. Hence, if anyone has any further information on the felspar aspect, it would be greatly appreciated.

Regards

SP