ann out, page-6

dear oh dear witches6,
it does matter who builds and owns the port and rail.

The total cost for construction of port and rail will be about 3 billion.

Those infrastructure facilities will handle 150 million tonnes per year for 20 years with an annual income of about $10/tonne.

The operating costs will be about $2/tonne.

Leaving a profit of about $8/tonne.

You work it out. But I reckon the annual profit of OPR will be about $1.2 billion. But 50% goes to mitsubishi so their annual profit might be $600 million.

So it does matter - big time.

I want shares in opr. I think the only way i can get in on the float of opr is to hold shares in mmx.

MMX profit from IO sales is of course price dependent but assume they get $100/tonne CIF and costs after rail and port are built are about $20/tonne and they sell 50 million tonnes /year [say from 2013] then the annual profit could be about $4 billion. But 50% goes to mitsubishi so their annual profit might be $2 billion.

Total annual profit for mmx could be $2.6 billion.

Now I have done these calcs on the back of an envelope and they are very easy to criticise because of various assumptions. However, my point is mmx has a lot to gain from construction and ownership of infrastructure.

As for share value - too hard for me to calculate but its a lot more than $4