chinese very very keen on sundance!50mtpa!, page-4

Nectar,

You must not sleep to find the volume of info you share.

If 50M tonnes is the new target it puts a new slant on how cheap they are trying to get this.

If the Chinese were buying 50M tonnes in a year at say $150/tonne. Cost is $7.5B ( & they would be happy to pay this)

To buy SDL at $1.4B plus spend $4.2B to construct (probably less) = $5.6B...(they would be even happier to pay this)

So they still get the ore & now control an asset for less than just buying the ore.

So they are paying nothing for 'goodwill'

This view is a little simplistic but I think demonstrates the inequality of the offer that has been tabled.

Still holding in my sweaty palms.

M



So