Good presentation. Quotes some very good financials based on an ASX announcement 27/11/13:
A$1,200M CAPEX +/-25%
A$69/t FOB (excluding royalties) C1 cash cost
A$2,780M NPV
39% IRR
EBITDA of A$474M
BREAKEVEN PRICE of US$84/t (A$99/T using 1.00A$=0.85$US, as Royal assumes)
Some questions:
1. What long term iron price for 67.4% Fe is being used in the above financials, in particular as nearly a year old, when iron ore prices were much higher?
2. Is the break-even cost of A$99/t your total CFR cash cost? How does one get a 39% return on $1.2B with these operating costs?
3. Is not Royal's capital intensity only for the mine with the infrastructure assumed to be outsourced? Do not the peers being compared to include some or all of the infrastructure? If they do, then would not be a like for like comparison?
Am I missing something?
Good presentation. Quotes some very good financials based on an...
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