yes but you have written that expansion plans will be financed by income; an income stream commencing 1 year out and possibly into a declining market.
I did say that a $50/t margin may be eroded by one dollar for every dollar fall in the price of IO sold.
Scary stuff. Profit=expansion.
Looks good on paper.
My suggestion is that you look at your reasons for your IO predictions then research future IO demand and IO future supply.
Between RIO and Vale there are plans to increase world IO output by 10%+ starting within 12 months. A slight, I repeat, slight softening in demand for IO globally then there is a price shift.
Very brave of IFE and TRF to venture into this market.
But you never know. Things could change and the world just gobbles up any surplus IO and wants more.
I still think options offer a better exposure IMO.
TRF Price at posting:
44.5¢ Sentiment: None Disclosure: Held
