This is from a Fat Profits report I found on the web from january this year. So it looks like they could use 3 years of profit @ $200mill pa( after paying for the road) to get 3x output or 9mill tons pa. I am glad they chose the cheaper option with soonish profits. The share price could have could have languished for 3 years.
"Ultimately, the company will develop its own port facility to export iron concentrate. The current proposal will see a port facility developed on Maria Island in the Gulf of Carpentaria. The following figure shows the proposed port development site.
The stage 1 development of Roper Bar including the port and pipeline has an estimated capital cost of US$680 million. The mine and site works will consume US$170 million, the pipeline US$250 million and the port US$200 million. A contingency of US$60 million makes up the remainder. By 2018 stage 2 will be completed when the beneficiation plant will be constructed at an additional cost of US$200 million to allow the exporting of iron concentrate to commence. The cash flow generated from the DSO sales is expected to finance the final US$200 million price tag for the stage 2 beneficiation plant. When completed, the Maria Island loading facility will have a capacity three times greater than the DSO capacity out of the Bing Bong loading facility. "
WDR Price at posting:
71.5¢ Sentiment: Buy Disclosure: Held
