titanic, page-9

Holders, spare some thoughts for CITIC Sino. They spent $8b fr 25mtpa opex about $68/t + Carbon tax + CP's special royalty (could be $500m/yr according to SMH).

$8b of debt with say 7% interest = $500m+ p.a. interest payment + $500m/yr CP fee. Bankrupted???

At 8.5c/share still too expensive IMO.

Questions:
1) Why independent auditor valued (in 2011 report) $326m nett asset value?
2) Why did feasibility study done in 2011 (the updated one) used $195/t dry iron 68% AND increase to $300/t, while most of studies for other companies used about $100/t.