Iron ore +1.9% to $US133.55 a tonne
You can add another $66,000,000 to the Free Cash Flow of Robe Mesa (more than the market cap of the company).
*******************************************************
On the 10th October 2023 the company released the DFS for the Robe Mesa Project:The report said:- At an assumed base case of Iron Ore @ $90, this would equate to free cash flow of $419,000,000 (million)At the time, the Iron Ore price was @ $117, the DFS said this would equte to free cash flow of $1,262,000,000 (billion)Today the Iron Ore price is $131So, what we know is a $27 tonne movement in the Iron Ore Price between $90 and $117 (+$27 increase) resulted in free cashflow improving by $843,000,000 (million)Therefor, we can assume every $1 dollar movement in the Iron Ore price = $31,000,000 (million) upgrade to the free cash flow $1,262,000,000 - $419,000,000 = $843,000,000 / $27 Increase = $31,000,000In the last week, the Iron Spot Price has increased by a further $14 from the DFS best case of $117.This equates to an improves cash flow of $14 (increase in Iron Price) x $31,000,000 (see above) = $434,000,000The Value of the Project Free Cash Flow is now @ $1,262,000,000 + $434,000,000 = $1,699,000,000 (billion)The Market Cap of CZR is $53,000,000 (million)
Expand
(20min delay)