bigstar, page-5

I have extracted the summary of the last calculations by Bigstar and i sure he wont mind...the numbers are still very relevant...

All the models already prepared to date use a very concervative FOB price of around $63.12 usd and with low cost of production that is why SDL is such an attractive share, not to mention the expentiantial potential to increase in the reserve..

" Model 1: 35Mtpa / 25Y mining with FOB price=US$100
Avg FOB price(DSO)=US$100/t (changed from US$63.12/t)
Avg FOB price(Concentrate/Pellets at +65% Fe)=US$100/t (changed from US$66.30/t)

NPV per share = A$2.95
Project IRR = 46%

Model2: 35Mtpa / 25Y mining with FOB price=US$130
Avg FOB price (DSO) = US$130/t (changed from US$63.12/t)
Avg FOB price (Concentrate/Pellets at +65% Fe) = US$130/t (changed from US$66.30/t)

NPV per share = A$4.82
Project IRR = 65%

A good outcome is that higher spot prices will bring more cashflow and reduce the payback periods, hence the noticeable increase in SP and IRR"