rough net profit calc

FancyP,

If you get the chance ask MM how they are going to get the offsite costs down. Specifically any rail costs to San Fran if they are using Union Pacific.
Would he reply to a question like that if I mail him?

I did some very rough calcs based on a Proved Resource of 100M tonnes at 20% Fe.
It looked ok even for the low end throughputs - not great, but doable.

e.g.

100M at 70% recovery = 70Mt@20% Fe
= 14Mt contained Fe
To produce a concentrate @67% Fe = 20.9Mt concentrate
15 year mine life = 1.39Mt concentrate per year.
If we use US$110/t concentrate price and the old opex from the FS ($66), cant remember if the FOB Opex was AU$66AU or US$66 - anyway almost at parity so will ignore for now -
thats about $61.2M gross sales per year for 15 years.

CAPEX would probably be paid off in the first 5-6 years (based on US$180M)
Although does anyone know how CAPEX repayments are treated Tax wise in the US?

Also I think the current bad prices for Iron ore are based on 62% haematite ore so not sure if US$110/t for a %67 magnetite concentrate is realistic or not.
And even a small grade increase really bosts the gross sales.