pp,7% royalty i believe in on the purchase price, so for example...

pp,

7% royalty i believe in on the purchase price, so for example if it is $140 it is $9.80

Crosslands will have to pay OP&R transport charges of what I assume will be around $31 as to my original post.

And having to fund the $3.7bill Jack Hills, that is going to take a lot out of the profitability

That's shy I think it's going to cost Crosslands well over $100/ton for their operation. Add on to that all the other costs that companies have to add on, I'm thinking to make a profit, they'll have to be selling it at a price above $120

With these new figures coming out, I expect the deferred payment that could have been $2bill into Crosslands to be much smaller unfortunately

The big question is

What will the price of iron ore be in the future?

BHP's production will be much higher in 2015

Much more Iron ore will be produced from Africa and South America

What will the infrstructure growth in China and India be like in 2015?

If you had the reigns of being able to borrow $10billion, would you be going ahead with Jack Hills? Now it all makes sense why Barnett was annoyed that OP&R is tied in with Jack Hills

Anyway mate, unfortunately we have both lost a fair deal on this one.