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.
CDB Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
