10MT/PA VS 16MT/PA
10MTPA @ $120/t ore price
costs/t all inclusive = $98/t
nett ore sale price all inclusive = $124/t
margin/t = $26/t
after tax nett eps = 7.3c
potential 10 pe sp = 73c
30c sp div yield = 24%
73c sp div yield = 10%
16MTPA @ $120/t ore price
costs/t all inclusive = $94/t (inc $500m ? plant upgrade)
nett ore sale price all inclusive = $124/t
margin/t = $30/t
after tax nett eps = 13.5c
potential 10 pe sp = $1.35
30c sp div yield = 45%
$1.35 sp div yield = 10%
economic driver for 16mtpa upgrade is substantial reduction in unit costs.
(note - average asx top 300 div yield is 3.5%)
(note - average asx top 300 pe valuation is 10 to 15 times nett earnings)
10mtpa vs 16mtpa
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