Iluka advising the market today they are obtaining $2,200 for this quarter. It's right on the mark against their 2 year modelling forecast that was sent to me earlier in the year.
Just take a look at the FY12 numbers and think carefully whether the foundries using Zircon will be paying these prices or looking for a serious long term alternative and what price they will pay for that alternative.
Does this answer some of your questions regarding whether the company will be able to sell all the Spherichrome? and can you see why the big boys like Possehl and H.A. signed up for the Spherichrome?
Just for general interest. If the company obtained a price of $2,500 for the 8,000t of Zircon production it will do per year, it would pay the entire opex of the plant with change.
As for the project.
We will soon see the numbers via the quarterly and more than likely an extensive commentary, but just remind yourself that these are only commissioning numbers up to the 30th Sept and the plant would not have hit it's straps yet. Phil advised revenue numbers via the last presentation and after following this project for many years, I feel very comfortable that these will be achieved.
Just be patient, no one is even close to bringing another mineral sand mine into production, least of all with the suite of minerals like this.
...and this is clearly highlighted by Iluka's FY12+13 numbers.
Regards Pep
IDM Price at posting:
17.9¢ Sentiment: None Disclosure: Held
