SDL is planning to produce 35Mtpa of iron ore. The revenue value here at $150/t is $5.2b. Currently, iron ore prices are higher than $150/t. Potential is up to 100Mtpa or reveneu of $15b.
By 2014, SDL mining date, PEN may be producing 3Mlbpa in the USA. Revenue value at $75/b (current long term contract price) is $225m
SDL may be producing 100Mtpa by the time PEN commissions Karoo for say 3Mtpa.
SDL will earn $15 billion in revenue compared to PEN's $450 million in revenue at 6Mlbpa.
So SDL's revenue value is 20 to 30 times that of PEN.
Further, SDL's total production costs will probably be around $35/t where has PEN's total production costs are forecast to be $30//lb. So SDL's profit margin is far greater than PEN's.
PEN Price at posting:
7.2¢ Sentiment: None Disclosure: Not Held
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