A few pricing thoughts...
Concentrating solely on the Guelb el Aouj Iron Ore Project and ignoring the 2.5 Billion tonnes resource at Lebtheinia, (a mere trifle LOL)
Assume SPH sells 1/2 her stake in Guelb el Aouj for @ $175 Million cash, so then would be a 1/4 owner:
Iron Ore Pellets:
$40 per tonne costs, currently trading at $90 per tonne.
Yearly Profit (30 Year Mine Life):
$50 per tonne profit * 7Mill tonnes per year output:
=$350 Million profit per year.
SPH yearly profit = @ $87.5 Million (1/4 partner)
Currently 147.83M shares on issue.
Equates to a potential dividend of $0.60 per share for 30 years!
Not bad for a share trading at 90c :-)
Hold on tight for news in Q3....
A few pricing thoughts...Concentrating solely on the Guelb el...
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