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4.5¢ atlas iron limited

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Travvo88

632 Posts.

42

11/02/17

00:28

Post #: 22534034
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Originally posted by Michaeljob ↑

60Mt at $50/t to mine will cost a total of $3.0b over the life of the mine.

At the realised prices over the last 1/4 of $66 the sales price would be $3.96b therefore $960m profits over 6 years giving $160 of annual profit for an initial investment of around $50m, based on history $80 would be the likely estimate over the following 6 years which could increase returns.

Keep in mind that much like oil the large iron ore producers also have an interest in a certain level of price setting through management of supply.

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Costs will be higher than $50/t (can see c1 costs in DFS are $2-3 higher than current from memory) but there is still good money to be made.

AGO Price at posting: 4.2¢ Sentiment: Buy Disclosure: Held
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