gj to present at resources rising stars today, page-14

What will probably happen is a portion of the 35mtpa will be sold as "offtake" agreements at discounted prices to the current market spot price when the mine goes live, in return for guaranteed purchases and or part of the initial capital to build the rail & port.

In most cases less than 50% of production is sold off, and the discount is usually 30% less than spot market rates.

With analysts forecasting iron ore averaging $120-150 per tonne for the next 5 years, its safe to assume approx 17.5mtpa being sold at around $90-120 per tonne while the remaining will be sold at $120-150 per tonne.

The beauty about this resource is as follows:

Extremly low Cash Cost of $20 per tonne
Very long mine life 20+ years
Fast K payback, 12 months
Expectations that the overall resource will rise to between 3.5 to 4 billion tonnes due to the high quality tenements that SDL has on its balance sheet.
As this resource rises to these levels, you can safely expect annual production to rise from 35mtpa to 50mtpa to 75mtpa without sacrificing the quality of ore or shortening the mine's life.

SDL is a magnificent investment. Ive pumped a heap of my super into it over the last 3 months. And thats where its staying! :)