a few calculations

Just thought I would run a few basic calcs to get my head around the economics.

5 MTPA production of 68.5% FE.

Would expect a 10% min premium to 62% DSO, so taking a bearish view on prices, lets use a Long Term Price of $75 (62%) so $83 for our product, let call it $80 FOB.

Expected revenue would therefore equate to revenue of $400 million/year or $12Bil/30yr mine life.

So what would a CAPEX/OPEX need to be to make this economical. I would expect you would want, after OPEX a 5yr payback on investment. Lets assume we could operate on a $63/t OPEX which includes everything to FOB, we are looking at profit of $17/t, 68mil/year or 2.04B/life. So, five years we are looking at $340M. Taking into account Working Capital, we will probably need $500M from somewhere.

Seems to me, that we need to prove this is economical and sell majority to Chinese. Let's get it prove feasible and then they can take it off our hands for $200M plus 5% royalty.