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16:32
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Originally posted by pikapika
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northroo1 "In my opinion the price of iron ore needs to go to $100 for this project to go ahead..." It's more likely that you are wrong and Mr King is right. Please see Post #14376997 by camcorder who had a chat with Mr King at the AGM and generously shared the conversation with all of us: "......He said that at $90 a tonne which the presentations have been centred around there is plenty of fat on margins and SDL is making bucket loads even encountering potential mishaps, build cost over runs, and the like. Banks like fat in their projections. At $80 a tonne SDL will still make lots of money and he did go into specifics' but as the price dips below $80 the margins obviously get tighter and the banks like certainty especially when it comes to financing. He said Citi are predicting a low price throughout next year as others are predicting an upswing. Short answer no one can predict the price, less so the banks. The banks needed to see the "bottom" they needed to see an upswing and they needed to see stability before they can disperse funds....." I hope the banks have seen the bottom and with China's $1 trillion stimulus infrastructures, funding for our project will be wrapped very soon. Cheers. Pikapika
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Originally posted by pikapika
↑
northroo1 "In my opinion the price of iron ore needs to go to $100 for this project to go ahead..." It's more likely that you are wrong and Mr King is right. Please see Post #14376997 by camcorder who had a chat with Mr King at the AGM and generously shared the conversation with all of us: "......He said that at $90 a tonne which the presentations have been centred around there is plenty of fat on margins and SDL is making bucket loads even encountering potential mishaps, build cost over runs, and the like. Banks like fat in their projections. At $80 a tonne SDL will still make lots of money and he did go into specifics' but as the price dips below $80 the margins obviously get tighter and the banks like certainty especially when it comes to financing. He said Citi are predicting a low price throughout next year as others are predicting an upswing. Short answer no one can predict the price, less so the banks. The banks needed to see the "bottom" they needed to see an upswing and they needed to see stability before they can disperse funds....." I hope the banks have seen the bottom and with China's $1 trillion stimulus infrastructures, funding for our project will be wrapped very soon. Cheers. Pikapika
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I believe a firm bottoming out of the IO is key for SDL funding progress to seriously proceed but what is really important for funding to occur is what the market forecasts the IO price to be in 4-5 years time.
