re: Ann: Mining Licence Awarded for Mayoko-Mo...
Hi 29101971,
Yeah I think it will be $20-25 which when added to $41 comes to $61-65 plus a few dollars for rolling stock gets us to $70 all in so to speak. I think this is a conservative number and we may in fact be closer to $65.
At the current Iron Ore price of $118 it leaves a pretty healthy margin and you would expect a 2mtpa operation to generate around $100m free cash flow based on today's iron ore price. Obviously every $10 move in Iron Ore price results in a circa $20m difference in cashflow.
Squidd I agree the 64% Iron content should mean a higher selling price of at least $5. However I don't take that into account in my calculations as that extra margin is the icing on the cake so to speak.
All in all we have a cracking little project with a low capex bill and high profit potential.
EQX Price at posting:
57.5¢ Sentiment: Buy Disclosure: Held
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