spp closes oversubscribed, page-20

I'll give you a project example...

Project like ARU (not to promote other company just example)... REO (rare earth) price current around $120+/t. No share in ARU, not yet.

CAPEX Oct 2010 $950m
If REO is $54/t... EBITDA pa = $892m (capital payback in 3 yrs)
If REO is $22/t (current $120+), EBITDA pa = $219m (capital payback in 5 yrs)

Currently at $120/t, so $22/t is extremely conservative & still can payback in 5 yrs with interest paid.

No problem takeout 100% loan at 20-30% interest rate.

FWL $720m CAPEX (jan 2010 or earlier)
EBITDA = $145m (according to FWL website... old data)