Hi (westcott),Thanks Westcott, that means our calculation was...

Hi (westcott),

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