G,day 2910. Yes that article certainly was great publicity for Energio . Costs at less than $50 a tonne (I've heard on the grapevine it could be closer to $45 a tonne) and an iron ore price for 63% fe currently of about $120 a tonne makes for an interesting equation on the profitability of our company. Even if we allow for a worst case scenario of a high phosphorous level (attracts a penalty of around $4 a tonne according to my well informed source) and we only achieve 58% fe ( deduct around $2 a tonne for each % below 63%) we still would receive about $106 per tonne ($120 - $4 -$10). So if we assume costs of $46 per tonne, that's a profit of $60 per tonne. As per the Australian article Ian Burston is talking 20 million tonnes a year within a couple of years so 20m x $60 equates to 1.2 billion dollars profit a year. And our market cap is how much? Do your own sums on what you think EIO shares are worth. It's a freaking big number!
EIO Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
