itabirite is good

Hi All.

May post on Itabirite no good was in reply to some saying the Itabirite is No good. Too expensive to produce Etc.

Those figures that I posted for Itabirite Concentrate and Pellet Feed Fines,at $176/tonne would give SDL a FOB profit of around $136/tonne.
Multi ply that by 35 Million tonnes and you get a FOB Profit of $4.76 Billion per year.
Take it out to the 50 Million tonnes they have also been talking of exporting per year and we get a FOB Profit of $6.8 Billion per year.

No wonder the Chinese want it so bad. Why is it suppose to not be worth the CAPEX of $4.2 Billion for phase one? When phase Two will be payed for from phase one profit.

At those profit figures half way through year three or at end of year three of exporting DSO we could be looking at starting to produce the Itabirite at the profits above.

Regards
Westcott.