I've thought all along that mmx will be a winner. I'm now...

I've thought all along that mmx will be a winner. I'm now prepared to take a loss on the buying today as MMX (as they should) have painted a very positive picture, however there is much to not like about these bfs.

As I understand it, we have 50 years on the railway then it goes to the gov

The railway is now around $6bill. Proponents will want around 10% return on there risk to build the infrastucture and borrow money at what rate 9%. On top of that they have there estimated ongoing costs at $5.45/tonne

I'm thinking they will want around $31/tonne for use of the railway from Crosslands and SMC which is significantly higher than what I can see the industry standard is.

Operating costs of $33.6/tonne

Then they need to find capital of 3.7bill. If they lend the money 9% interest and paying it off over 10 years, add on another $28/tonne

Then we're looking at $93/tonne

On top of that 7% gov royalites on the price of Iron Ore.

Now the overall risk on borrowing $10billion is significant.

That is why I think Mitsubishi might walk away

Good luck to all on whatever decision you make from the BFS, but I've decided to take a loss here and go bluechip