"Pellet,sinter and concentrate brings a lot higher price. Around $40 or more per tonne."
Surprisingly I found the FOB price for Iron Ore concentrate (+65%Fe) and Pellet Feed (+66%Fe) quite high: For example I found the FOB for the above 2 categories from Brazil is US$67/t (Year 2009).
If I look at Gindalbie Reports (Dec 2009), their Kagara Concentrate Fob Price 2009 is A$97/t, which is US$120/t.
Their Concentrate price is derived from: 2009 Hamersley Iron FOB benchmark fines (97c/dmtu) adjusted for Karara quality 68.2%Fe versus benchmark 62%Fe, plus quality adjustment.
In our case, SDL Itabirite (+38Fe) when converted to concentrate will be of similar quality (from 65 to 68%Fe) meaning our estimates using a FOB price of $62.20/t for Itabirite concentrate is still conservative.
Cheers - BS
SDL Price at posting:
13.5¢ Sentiment: None Disclosure: Held
