What we need the scoping study to tell us is the threshold of profitability. For example, if it reveals that the likely post beneficiated FOB full cost(including capital depreciation) is say $40 tonne, then we can reliably calcuate the long-term profitability of the mine which would be good even if the Fe price halved.. say to $55/tonne. If it is in reality $40/tonne then hold onto your hats, because at least for the next 5 years margins could be $65/tonne +. That would invoke a re-rating of a biblical scale. Of course if it comes up to $80/tonne then things start to get a bit too tight.
As a wildcard if it's as low as $30/tonne we could make the Sinosteel offer look like entree as BRM becomes the main course.
Anyone else care to comment on the numbers?
What we need the scoping study to tell us is the threshold of...
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