golden week, page-9

Jin, there are two souces to understand a bit about the economic of the iron ore project. One is the update in March and the flash note in CDB website.

We expect it's 5 years long project, producing 30,000t of concentrate each month with NPV of $54m or $61m. I believe the NPV is CDB shares which is just 50% of the project. I think that because the fash note mentioned $10m pa for CDB. I believe the $10m pa is the profit for CDB.

I then wonder how to have such high margin, making $10m pa out of probably $20m pa revenue (30,000t/m * 12months * $110/t * 50%). The costs of a typical magnetite iron ore processing is in mining, grinding and trasportation. This one is pretty simple. Having said that, I still want these numbers to be proven with the 5,000t initial production. If we can make profit out of it, even contracted out, we are in big thing.