It is very prudent for SDL to use $63 p/t as the base price for...

It is very prudent for SDL to use $63 p/t as the base price for it's assumptions. The current IO price is high due to demand exceeding supply. However, over time, (don't ask me how long) supply will catch up with demand, as happens in all markets. Supply will overshoot demand and sent small high cost producers to the wall when the IO price will then adjust to a more realistic long term price. You must remember that IO sat around USD20-US25 per tonne FOB for 15 years before China began ramping up imports. The speed of the china ramp up caught the producers with their pants down and unable to keep up with demand. This forced the price up and opened the door to new producers.

THERE IS NO SHORTAGE OF IRON ORE in the world. The shortage is in infrastructure and logistics needed to dig it up, rail it, load on to ships, ship it, unload and transport to end users. Iron Ore, because of the volumes involved, is a logistics business. Ore is the ground is worthless if you can't get it to the buyers.

The long term producers of IO will be the companies that own they own rails, ports, terminals, stockpile, ships etc., not those that have an iron ore desposit.

Sundance needs to own and operate all their own infrastructure and have a low cost base. That is their (and our) future. They are on the right track and should not be blinded by the high unsustainable IO spot prices.