Industry tends to use relatively low LT price assumptions. Why do they do this? Could be to inject a large dose of conservatism into their internal P&L assumptions. Could be to talk the mkt down in the event that they want to buy more assets in the open market place. Could be a miriad of reasons.
As for higher Cu price assumptions - bear in mind that the cost of mine development will inevitably increase as the sector costs firms up. Either way, let us assume a LT price of $4Lb/$8800Ton - then the pre discounted EPS number would be ...........
DOUBLE!!! $2.44
Robbo
IRN Price at posting:
72.8¢ Sentiment: Buy Disclosure: Held
