Analysts can make all kinds of assumptions but we have cross referenced a real world situation.
The CITIC / Sino magnetite project is an example of everything that can go wrong. The Chinese themselves admit they stuffed things up by taking away the project management from Worley Parsons.
All the news summary reports as to Sino regarding Resources and costs are rubbery. Macquarie Bank 9/13 see it as a 20 year mine. Mining Australia 12/2013 see it as 27 year mine life.
C Palmer is due to be paid royalty A @ $0.30 per tonne ORE and also royalty B [ an unknown amount ] per tonne of CONCENTRATE [ ie what is slurry pumped to the export port ?]
When we find out the value of Royalty B we will have an inkling of an updated going concern valuation on a magnetite project that perhaps would be useful in valuing IRD
IRD Price at posting:
29.5¢ Sentiment: LT Buy Disclosure: Held
