Given the iron is only a small portion of the cash flow, it add $300m-$400m to the NPV assuming a LOM price of USD150/t.
Remember we are only producing 500,000 tonnes of iron a year so the USD50 increase on DFS pricing to current spot, adds about $25m in revenue.
The more pertinent question is on the discount rate - is 8.00% still the appropriate measure? Given where long term bonds rates have moved to and the premiums investors are willing to pay for other assets, I think 8.00% is a cheap measure.
Given the iron is only a small portion of the cash flow, it add...
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
