1. WR mentioned that the the recovery rate will be less than 50% (can't remember the precise figure). So, if I am interpreting this correctly, the sellable ore will be less than 800 million tons, which still provides for 17 million tons per annum for around 40 years.
2. The margin of $30 per ton that WR mentioned is probably before overheads (administrative costs), interest (on any borrowings), depreciation (the cost of capital equipment spread over time), mining royalties and taxes.
3. Future earnings must be discounted back to Net Present Value.
Even so, Fe price increases will likely increase the margin and NPV in the Definitive Feasability Study. The result should certainly be a significantly higher share price at a level that should make us all very happy.
There will also be other developments (Duck Creek, West Hammersely etc) to add to the value of BRM in the future.
BRM Price at posting:
$3.47 Sentiment: Hold Disclosure: Held
