Thanks Westcott, that means our calculation was very conservative for Itabirite concentrate, at this stage we assume FOB $US65/t and you mentioned about between $110/t and US$130/t, quite doubling from estimates.
Well in that case, SP should be well above A$13 as following:
Itabirite concentrate (from 65 to 68%Fe): FOB US$120/t x 2,000MT = US $240 billion Production costs = US $62 billion (same as before) Operating costs = US $178 billion Capex = US $1 billion
--> Profit for Itabirite concentrate = US $177 billion
Total Profit DSO + Itabirite Concentrate = US $28 billion + US $177 billion = US $205 billion
Now assume worst case, 6 billion share issues, and Gov Cam stake is 25%, and less 20% tax corporate, etc..., we end up with estimates SP = US $17 or A$13
A change in FOB price and high increase in tonnage make a big big difference...
Cheers - BS
SDL Price at posting:
13.5¢ Sentiment: None Disclosure: Held
