Net Profit BT per annum = (Sale price - royalty expense - FOB cost - D&A expenses) * production rate.
So assuming an average sale price of $150/t for LVPCI you'll generate a profit of about $36 mil pa. Which equates to a return of ~7% pa on the upfront capital before tax. At $150/t it's difficult to put forward an investment case. But at $170/t, the profit works out to $96 mil pa, and a rate of return of ~20%. The Baralaba PCI price has hovered between $140/t and $240/t past few years, so I tend to think it's a goer using an average price case.
COK Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
