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1.0¢ magnetite mines limited

Ann: Company Presentation - RIU Melbourne Resources Round Up, page-13

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westaussie

1,840 Posts.

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11/10/14

10:53

Post #: 14110208
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Originally posted by Krypton ↑

Thanks Micky 78,
So ROY can probably get A$105-120/t (if spot price stays at US$80/t for 62% iron). This would make the margin about $6/t to $21/t based on ROY's stated break even cost of about $A99/t. Hence the $margin based on $9.3mtpa produced, $55m/yr to $195m/yr.

Stated CAPEX = A$1,200m +/ 25% - if take as 1,200 x 1.25 =A$1,500m ( based on the more recent magnetite projects in Australia, CAPEX probably will be higher than this).

Hence simple return on investment could be as low as 55/1500 = 3.7%. Would not it be very unlikely for the project to fly at this low return on investment? (and would not it struggle to cover its interest bill on CAPEX debt?).

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you didn't answer my question.

MFE Price at posting: 3.5¢ Sentiment: Hold Disclosure: Held
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