Lets go back to basics.
SHIP has 20M MT of Iron Ore. It is 60% iron ore and if we assume AUD price of $100/MT.
Cost of production CFR China is $60/MT + State Royalties of $6/MT + $5/MT Royalties to previous stakeholders. $71/MT
That is margin of $30/MT
NPV = $600M. Therefore 50% stake is worth $300M.
0r $30M per year. on 7x earnings around 15 cents per share.
However before that can occur FAS need to raise 20% of the project being around $65M.
FAS do not have port access ...yet.
Cazaly and Mineral Resources and GWR will get 10M MT first round extra capacity.
No offtaker will advance funds without all steps being complete.
FAS needs to be careful that they are not misleading shareholders and the market with this announcement.
Lets go back to basics.SHIP has 20M MT of Iron Ore. It is 60%...
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