Kenso, I think the OPEX for DSO is still around $AU55/ptShould...

Kenso, I think the OPEX for DSO is still around $AU55/pt

Should be 2mtpa, so correct - GBG will be entitled to 1mtpa.

Ore Price again will be below $150p/t and we will not receive any premium for the DSO, infact there should be a small discount due to impurities.

Contract Price: $US140 = $AU134 (@ 1.04 AUD)
OPEX: $AU55
EBIT: $AU79m

Again, none of this includes royalties, MRRT, interest, income tax etc. Also I imagine the it'll take a quarter or two before the budgeted OPEX is reached.

The payback period for GBG is 10 years I believe, all excess cash will be used on expansion plans I imagine. I'd prefer expansion plans as opposed to a 1-3cent dividend every year anyway. GBG only needs to pay back the workcap (say 167m USD) and infrastructure loan ($600m USD). Given the margins of Karara this will be no problem at current prices. Hopefully the majority of expansion plans can be funded with debt and cash flows.

GBG has the potential to be a monster, but that is a blue sky scenario. Karara is a world class magnetite project, and we have another (but inferior) project, Lodestone, only 50km from our existing Karara infrastructure.

PS Loving the pictures from management. Can really see this project transforming. Should be only a matter of time before we get market recognition.